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Mr. Rini plans to purchase new IT equipment and to build out a training/meeting room in April to further these new goals for the operation. Because he wants to ensure he has adequate cash flow for April - June,accompanying financial data and to answer the questions below:
1. The base scenario assumes a minimum beginning cash balance in April - June of $8000. Will he be able to function?
2. Should he increase that to $9,500 to be more conservative? What are the effects on cash flow?
3. What if he increased his minimum inventory levels to 40% of COGS from 30%?
4. How should he measure his team's success?