a. overdraft, sell of unwanted asset

b. sell of unwanted asset, sell shares

C.

overdraft, because overdraft can get money easily 

sell unwanted assets since company B have 3 restaurant and have high debt, selling unwanted asset can clear up space and gain extra finance. 

d. Company A could provide its financial position, company B could

This then helps Manuel, secondly, then he can keep his bank manager informed with his cash flow position, and the bank manager can look into additional financing for Manuel. 

b) The bank manager will also be interested in a cash flow forecast for Gardener’s Green. The cash flow forecast will help the manager to see what are Gardener’s Green financial needs in the months where he has cash flow issues. This will allow the bank manager to have money ready to lend to Manuel from January to June, where he has a negative bank balance. 

Another reason why the cash flow forecast is helpful is it maintains a long-term relationship between the lender and the borrower. As a bank manager, you want to earn interest through a long-running relationship with the borrower. By lending them money in a timely manner, it helps to sustain their business and keep it profitable. When the business profits, they are able to continue borrowing money from the bank, this in turn brings future profits in the form of interest payments to the bank. 

c) Some costs stay the same each month because regardless of whether there is work to be done, the company needs to keep its workers, especially since the case study states that the experienced gardeners are hard to find. For example, in December and January, there is almost no gardening work to be done, which means the gardeners aren’t actually doing any work. However, to prevent his experienced gardeners from being poached by the competition, and to reduce disruption that comes from firing and re-hiring workers, Manuel needs to continue paying the same wages/salary to his workers. 

Some costs vary each month because the amount of supplies that Manuel buys depends on the weather. For example, during the winter and autumn months, Manuel doesn’t spend money buying plants because gardening season is over. When spring comes in March, and it’s time to do gardening, Manuel will spend money on buying plants and trees. 

d) When prices are raised by 10%, Manuel will have to spend $33,000 on buying trees. That means his cash outflow becomes $54,100. This in turn means that his bank balance decreases to $3,208. 

e) Manuel could improve cash flow by applying for bank overdrafts during the months where he has a negative bank balance. Another way to improve cash flow is to apply for trade credit from his supplier, which will allow him to delay payments for the plants and trees purchased to a few months later, if the supplier is agreeable. If however the supplier is not agreeable, a third option Manuel can consider is using money from his personal savings to fund his business for those few months.