This example continues the topic from page 254 (Introduction: Chapter 6) of Chapter 6.

Example

As a student, you are only too well aware of the importance of cash and cash inflow. Without cash, you are unable to buy food, go out in the evenings or pay your rent. Once the money runs out and if you have no access to any further inflows of cash you would not be able to continue with your course.

Further examples of the importance of cash and cash inflow will be easy to find. Have a look in today’s financial press to see if there are any stories about companies getting into difficulties or going into administration as they have run out of cash and cannot continue operating.

Use your internet browser to research one or more of the following companies to see what role a lack of cash inflow played in their downfall or difficulties:

• Laura AshleyCarillion
• Conviviality
• House of Fraser
• Interserve
• Patisserie Valerie
• Toys R Us

Page Reference: 254
Heading reference: Introduction (Chapter 6)