What can be done to create a positive cash flow? Meggie Mohamed, CEO, knew that the bank would carefully review her company’s most recent statement of cash flows before determining if it would approve...

What can be done to create a positive cash flow?

Meggie Mohamed, CEO, knew that the bank would carefully review her company’s most recent statement of cash flows before determining if it would approve the loan needed for expansion. The bank loan officer had told her that it is important that the business show strong operating cash flows. Meggie knows that her company’s operating cash flow for this past quarter will most likely be negative. Although the company recorded significant revenue, most of the revenue was recorded as receivables. Meggie expects that the cash will come in soon, but not in time to report a positive operating cash flow. What should Meggie do? What would you do?