Preferred Pet Care, Inc., a mobile veterinary care clinic, has more appointments than it ever expected to have when it opened its doors. Each week it orders more vaccines, antibiotics, and preventive care supplies from a major veterinary supplier, with the understanding that it will pay for these supplies in one month's time. Most of the company's clients are elderly and on fixed incomes, and often do not pay for services for two or more months. This is not a problem because as long as the company continues to increase its appointments, it will create profits and growth.

Question

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The fact that the clients often do not pay for services for two or more months could lead to cash flow problems for the company, despite its increasing number of appointments.