Cash Flow Management: For the fifth quarter Speedy Solutions had negative operating cash flows as shown in the Cash Flow Statement in the Appendix. This negative cash flow was a result of Speedy Solutions large investment in Research and Development of their products. Speedy Solutions expects to see a turnaround in their operating cash flows once the new features are added to their products. Some ways Speedy Solutions can improve our cash flows would be to generate more sales to cover our large expense of Research and Development. To increase our sales we can hire more sales people to sell our products and advertise the new features that will be on our products. By advertising the new features on our products consumers will be more interested in our products and our sales will increase. Another aspect we could consider is licensing our Research and Development features. Other companies will pay to research and develop these features for their own brands, so it would be beneficial to our company if we made our competitors pay us for our …show more content…
In quarter four Speedy Solution increased fixed plant capacity and due to the projection of low demand in quarter five this excess capacity was unused. Due to the fact that Speedy Solutions projection for the fifth quarter was inaccurate many sales were lost due to stock outs. In the sixth quarter Speedy Solutions will take advantage of their new plant capacity by increasing their production. My recommendation would be for Speedy Solution to increase plant capacity again in quarter seven or eight to keep up with the demand of their