Watree Lodge and Greenville Restaurant 
Watree Lodge and Greenville Restaurant Concept Checks
Operating capital of a business is a very important of its set up, and the manager has to possess the required knowledge on how to manage this capital. That is equally important for the overall success of that business. Working capital is the difference between its current assets and current liabilities. It is the amount of cash needed to run the activities of the business effectively. Cash is the most important business asset; it will provide the management of Watree Lodge with liquidity and buying power. The management of Watree Lodge has to be able to control the cash flow to achieve this. This can be done through preparation of cash budgets that will enable them to manage cash inflows and outflows. if done right, the cash budget will help the management know whether the business has enough cash to meet its financial obligations. The point of cash forecast is to alert the management about possible shortfall in cash or surpluses. This will in turn help the management make informed decisions on whether to invest or to borrow in advance. I think that they should collect the thirty percent in credit sales sooner than the two months suggested. This will allow you to have more cash available to invest in assets that generate cash flow for the owners of your business. They can also offer a discount on cash sales, so they can save money on commission that they would have to pay the credit card companies.
Greenville Restaurant operates two bank accounts where one earns an interest while the other does not earn interest. They can request a zero balance account, this way they can consolidate their cash balances, and eliminate the need to maintain cash balances in each account, thereby reducing the amount of working capital they will need and also avoiding certain bank charges. They can also get an account reconciliation to reduce their business administrative cost and help protect it against fraudulent activities
Operating capital of a business is a very important of its set up, and the manager has to possess the required knowledge on how to manage this capital. That is equally important for the overall success of that business. Working capital is the difference between its current assets and current liabilities. It is the amount of cash needed to run the activities of the business effectively. Cash is the most important business asset; it will provide the management of Watree Lodge with liquidity and buying power. The management of Watree Lodge has to be able to control the cash flow to achieve this. This can be done through preparation of cash budgets that will enable them to manage cash inflows and outflows. if done right, the cash budget will help the management know whether the business has enough cash to meet its financial obligations. The point of cash forecast is to alert the management about possible shortfall in cash or surpluses. This will in turn help the management make informed decisions on whether to invest or to borrow in advance. I think that they should collect the thirty percent in credit sales sooner than the two months suggested. This will allow you to have more cash available to invest in assets that generate cash flow for the owners of your business. They can also offer a discount on cash sales, so they can save money on commission that they would have to pay the credit card companies.
Greenville Restaurant operates two bank accounts where one earns an interest while the other does not earn interest. They can request a zero balance account, this way they can consolidate their cash balances, and eliminate the need to maintain cash balances in each account, thereby reducing the amount of working capital they will need and also avoiding certain bank charges. They can also get an account reconciliation to reduce their business administrative cost and help protect it against fraudulent activities