As a result of cash flow shortages,Kellco Department Stores has fallen behind in payments to suppliers.Some suppliers are withholding shipments to Kelco until they receive payments on overdue accounts.To meet their immediate needs,Kellco Department Stores should utilize:

Question

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Short-term financing involves borrowing money for a short period of time, usually less than a year. It is the best choice for Kellco Department Stores in this situation as it will provide them with the immediate cash flow they need to pay their suppliers and continue operating their business. Long-term financing and contingency capital are not appropriate in this situation as they are designed for longer-term needs and are not meant to be used for short-term cash flow shortages. Vulture capital is also not appropriate as it typically involves high-risk investments and may not be available to Kellco Department Stores at this time.

As a Result of Cash Flow Shortages,Kellco Department Stores Has