answersLogoWhite

0

the rapid increase in sales produce a negative cash flow because your funds gets blockedfor eg earlier your sale was 10,000 units now your sale increased to 20,000 units to support the sale of 20,000 units you need to invest more money such as in inventory, debtors

Most people are accustomed to going to the store and paying by cash or a credit card and these types of transactions always result in positive cash flow to the business. Imagine however that you are a manufacturer. While you might get an order (which is of course a sale), you now have to produce that order which means any material suppliers might theoretically need to get paid before you get paid from your customer.

User Avatar

Wiki User

10y ago

What else can I help you with?

Related Questions

Was VisiCalc was one of the main reasons for the rapid increase in PC sales?

VisiCalc was one of the main reasons for the rapid increase in PC sales.


Was VisiCalc one of the main reasons for the rapid increase in PC sales?

VisiCalc was one of the main reasons for the rapid increase in PC sales.


A rapid rate of growth on sales may require?

Increased borrowing by the firm to support the sales increase.


What value does rapid prototyping have to different industries?

it is massive, rapid prototyping means, rapid manufacturing, and in the end fast sales, greater turnover.


If sales increase do accounts receivables increase?

If increased sales are all on credit then it will also increase the accounts receivable as well.


How do you calculate percentage growth having negative previous total net sales?

You can't have negative net sales.


Does an increase in overhead rate have a negative financial impact?

Increase in overhead rate would have negative financial impact since its one of the cost under the income statement. Increased in overhead rate would lead to increase in costs, which eventually would lead to lower income. Sales - Direct material - Direct labor - Overhead = Profit


What did Colgate do to increase sales?

to increase the hole or mouth of the paste


What accounts would normally increase with an increase in sales and approximately in proportion to the sales increase?

Hi! I am Josh. Nice to meet you! Do you want to turn your visitors into your real buying customers to increase your sales? Do you want to get higher conversion rate to increase your sales? Don’t worry ! Our amazing products can help you increase your sales obviously in short time! Just click below links, you will see how your sales will increase rapidly! h t t p s:// b i t.l y / 2LMheD1 (JUST REMOVE THE SPACE FROM THE WEBSITE ABOVE and PASTE it IN BROWSER.)


Will a debit increase sales?

Sales has credit balance as default balance so it means only credit can increase the sales and that;s why all debit reduces the sales because it is reverse of credit balance.


How do you find a percent increase in sales?

Hi! I am Josh. Nice to meet you! Do you want to turn your visitors into your real buying customers to increase your sales? Do you want to get higher conversion rate to increase your sales? Don’t worry ! Our amazing products can help you increase your sales obviously in short time! Just click below links, you will see how your sales will increase rapidly! h t t p s:// b i t.l y / 2LMheD1 (JUST REMOVE THE SPACE FROM THE WEBSITE ABOVE and PASTE it IN BROWSER.)


How to increase sales in supermarket?

coupons