A. State and discuss the concept that enables a firm to reduce its cash balances, decrease its bank loans, lower interest expenses, and boost profits. b. State and describe the concept that shows a firm's projected cash inflows and cash outflows over some specified period.
c. What is a cash conversion cycle and how can it be used to increase the liquidity (cash flow) position of a firm?

Greenbloom garden centers is a small, privately held corporation that has two stores in orlando, florida. the greenbloom family owns 100 percent of the company's stock, and family members manage the operations. sales at the company's stores have been growing rapidly, and there appears to be a market for the company's sales concept – providing bulk garden equipment and supplies at low prices. the controller prepares the company's financial statements, which are not audited. the company has no debt but is considering expanding to other cities in florida. such expansion may require long-term borrowings and is likely to reduce the family's day-to-day control of the operations. the family does not intend to sell stock in the company. required: discuss at least three factors that may make an audit necessary and potentially valuable for the company. be sure to consider the concept of information risk.