When the owner of a new firm is developing a ________, the individual should contact vendors and suppliers to ask about payment terms.

Question

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When developing a cash flow projection, it is important to consider payment terms with vendors and suppliers as this will have an impact on cash inflows and outflows. A cash flow statement is a historical record of cash flow and cannot be used to actively manage current cash flow. Margin profit analysis and gap deficiency analysis are not directly related to payment terms with vendors and suppliers.

When the Owner of a New Firm Is Developing a ________