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Managing the Cash Flow Gap
Author(s) -
Edwards James B.
Publication year - 2014
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.21997
Subject(s) - cash flow , cash management , cash flow forecasting , fell , business , quarter (canadian coin) , cash , finance , economics , monetary economics , history , paleontology , archaeology , biology
We are still in an extended period of economic turbulence, writes author and veteran business advisor Jim Edwards. And there is no new evidence that things are changing for the better. The U.S. gross domestic product fell by 2.9% during the first quarter of 2014. That is not a good signal for business cash inflows. And it possibly forecasts a gap in cash receipts from customers in the near term. So what strategy should treasurers adopt to manage the cash flow gap?