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The | |
| |cash inflow is from Mayo that has 95% of Lawrence’s sales |Cash outflows are four categories. They are payments |
| |while the cash outflow payments are to Gartner that supply |on accounts payable, operating expenses, capital |
| |70% of raw material and Murray that supply 75%. |expenditures, taxes, interest, and dividend payments |
| | |(Breasley, Myers, & Allen, 2005, p. 850). |
|Bank Loans |Lawrence bank loan will cause an increase interest rate |“If a company takes out a large bank loan, the bank |
| |depending on the amount that was borrowed. According to the|will track the company’s assets, earnings, and cash |
| |interest rate chart, Lawrence borrowed $1...
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