ABSTRACT
Cash is the most fundamental business resource through which creditors, suppliers, employees, the state, shareholders and other stakeholders can be satisfied. Profitable businesses generally generate cash but some businesses can be profitable but lack sufficient cash during certain periods of the operating cycle. The working capital cycle is used to determine the period of time which elapses from the point where cash is spent on any investment in current assets, until the point of the inflow of cash from the guests. The analysis of the accounts receivable balance can be conducted by using what is called the account receivable ageing schedule which is a listing of the customers making up the total accounts receivable balance. Liabilities management is limited to principally dealing with accounts payable, accrued expenses and other current liabilities. Blacklisting might result in greater difficulties in obtaining credit, as well as it might result in obtaining credit at penalty rates.
