A contractor's 13-week cash flow projection shows negative cash flow in weeks 8-10 but positive overall cash flow for the period. The best strategy would be:
Correct Answer
A) Arrange a line of credit to cover the temporary shortfall
Even with positive overall cash flow, temporary negative periods require financing to maintain operations. A line of credit provides flexible access to funds during short-term cash shortfalls without major operational disruptions.
Why This Is the Correct Answer
Even with positive overall cash flow, temporary negative periods require financing to maintain operations. A line of credit provides flexible access to funds during short-term cash shortfalls without major operational disruptions.
More NASCLA Questions
How long should daily reports and project correspondence typically be retained after project completion?
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
A construction company has direct labor costs of $85,000, direct materials of $120,000, and overhead costs of $45,000 for a project. What is the total job cost?
What is the primary purpose of job cost accounting in construction?
A construction company has current assets of $350,000 and current liabilities of $280,000. What is the company's working capital?
In CSI MasterFormat, which division covers earthwork and site preparation?
On an electrical plan, a rectangle with three parallel lines inside typically represents:
In a mechanical drawing, what does 'CFM' typically measure?
In CSI MasterFormat Division 08, which of the following would typically be included?
On a mechanical plan, what does the symbol 'RTU' typically indicate?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A general contractor is required to collect sales tax on materials sold to a subcontractor. The materials cost $15,000 and the sales tax rate is 7.25%. What is the total amount the contractor must collect?
Next Question
An excavation requires 2,400 cubic yards of cut material to be removed. The soil has a swell factor of 25%. How many cubic yards of material must be hauled away?