If there is cash deficiency, management is

faced with a potentially serious problem.

Creditors must be stalled; money is

borrowed; and/or assets are sold for cash.

While none of these alternatives are

desirable, at least the manager will be able

to recognize an imminent problem and deal

with it accordingly. This is better than being

faced with a crisis and having to borrow or

sell on unfavorable terms, or damage credit

relations with a supplier.