After studying this chapter, you should be able to meet the following learning objectives (LO).
“Claire, I don't understand something,” said George Douglas, C&C Sports' CEO, in the weekly managers' meeting. “Our sales and income have been increasing dramatically. Interest in our baseball pants, jerseys, and award jackets is higher than ever. Every year we're profitable, but we keep having to borrow money. It doesn't make sense to me.”
“You're right, George,” replied Claire Elliot, vice president of finance and administration at C&C Sports. “We're profitable and we're doing a lot of business, but we have some problems with our cash flow.”
“How can that be?” Douglas asked. “Have our customers quit paying their bills?”
“No, they're still paying what they owe us,” ...