Topic: An analysis on the effectiveness of cost and management accounting systems in

enhancing firms financial performance a case of Air Zimbabwe.

Background of the study.

Air Zimbabwe is a national flag carrier of Zimbabwe. As such it is taken as one of the three
Visible symbols that encapsulate sovereignty and self-determination, along with a national flag
And national anthem (Chattopadhyay, 2015). It is also taken as a grand gesture that asserts The
country’s status symbol. The history of Air Zimbabwe dates back to September 1967 when The
airline commenced operations and was named Air Rhodesia. In 1979 Air Rhodesia was
Rebranded to Air Zimbabwe Rhodesia. However, after independence in 1980 Air Zimbabwe
Rhodesia was rebranded to Air Zimbabwe by introducing national colours (Shoko, 2011). During
rebranding in 1980 Air Zimbabwe introduced Shona and Ndebele for in-flight Announcements in
addition to English. Before Independence, Air Zimbabwe only used English For in-flight
announcements. At Independence in 1980, Air Zimbabwe had 18 aircraft and was A major player
on the regional and international scene (Mutambirwa & Turton, 2000). However, Today (in
2017), Air Zimbabwe has 10 aircraft with only four of these in use while the remaining Six
aircraft are on care and maintenance. According to Malaba (2016) Air Zimbabwe has been In a
downward spiral since 2003. Various factors have contributed to the airlines’ financial Woes, key
amongst them, is poor service quality (Steyn & Mhlanga, 2016). Negative media Reports have
further tainted the airlines’ image after it was reported in March 2017 that the Airline was issuing
handwritten boarding passes to passengers. Consequently, this has Damaged the airlines’ image
resulting in passenger numbers dwindling from 1 million in 1999 To less than 20 000 in 2016
(Mhlanga, 2017). In June 2017, to salvage its battered image, Air Zimbabwe was rebranded to
Zimbabwe Airways .The former Air Zimbabwe logowas removed and replaced by a black tale
featuring the Zimbabwe bird and red Star. It was accompanied by green, yellow, red and black
rings near the tail, symbolising the Country’s flag. Figures 1 and 2 below show the old Air
Zimbabwe and the new rebranded Zimbabwe Airways.

Although there was a logic behind rebranding Air Zimbabwe, particularly after its battered
image,There is a need for the airline to address the root problems identified above. Failure to
which Will be tantamount to addressing the symptoms rather than the root cause of the airlines’
Financial woes. Therefore, there is a compelling need for the airline to develop value promise
After rebranding. A rebranded Air Zimbabwe needs to rise to its value promise or brand equity If
it has to reclaim its market share lost to competing regional airlines namely, SAA, Ethiopian
Airways, Kenya Airways and BA Comair. For the airline to convince passengers that it has
Changed for the better it must first improve its performance on key parameters like punctuality,
Service quality and air fares and should not introduce points of differences which increase the
Air fare of Air Zimbabwe. Once these concerns are addressed, passengers are likely to stick To
the airline. The airline should focus on bridging its ‘points-of-parity’ before enhancing its Points
of differences. Re-branding might make all the difference between Air Zimbabwe and Zimbabwe
Airways but it requires a company-wide initiative. The most formidable challenge For the airline
now is to translate the positioning and qualities into tangible or service-centered Experiences.

Based on the data presented above, the researchers urge the airline to reduce its staff/plane Ratio
and to adopt employee productivity improvement strategies. With a staff-aircraft ratio of

200:1, Air Zimbabwe is clearly oversized. Accordingly, there is a clear case for staff
Redundancy. However, in the process of doing so, there is need to safeguard potential loss of
Critical mass of skilled staff either through voluntary or non-voluntary retrenchment. The airline
Can reduce its labour costs and increase employee productivity by adopting strategies to
Schedule reasonable flight hours for flight crew, reduce cabin crew overtime, dispatch
Maintenance staff efficiently during direct working hours, and encourage employees to provide

Cost-control strategies.

Accusations of mismanagement and corruption have long been associated with Air Zimbabwe,
Resulting in its placement under judicial management in 2012. A forensic audit in 2016 pointed
To alleged fraudulent activity by the airline’s management. Findings released revealed that
Between 2009 and 2013, five executives prejudiced the airline to the amount of €5895 695.49 Or
not and US$1 298 827.88 each, totalling approximately US$10 million (Chibamu, 2016). The
fraud contributed to the financial problems the airline is facing (Malaba, 2016).The world
economic crisis caused and compounded foreign currency shortages, and the lack Of fuel
increased the operational difficulties of Air Zimbabwe. Therefore, Air Zimbabwe’s

Financial problems were also attributed to the volatile economic environment which was
Characterised by the shortage of foreign currency as well as hyperinflation which was above
100% in 2010 (Zhou, 2012).Furthermore, Air Zimbabwe aircraft are often used as private
ambulances for Robert Mugabe And his family’s medical trips overseas (News Day, 2014). In
state carriers political processes Supersede airline operating interests in a market of substantial
government influence (government airline or monopolistic market) (Chattopadhyay, 2015). A
volatile political Environment in Zimbabwe was the cause of dwindling tourist arrivals to
Zimbabwe, which has Significantly affected the load factors for the national carrier (Bhebhe,
2016). Consequently, Political interference has significantly affected the performance of airlines
(Mananavire, 2016).Not using new technology is also affecting Air Zimbabwe’s financial
performance. According To Ndlovu (2016), Air Zimbabwe is operating with old and outdated
technology in comparisonTo other airlines. Its equipment is so old and unattractive that
customers doubt the safety of The aircraft, leading to them board other aircraft and to shun Air
Zimbabwe. Lack of Implementation of new technology is due to their inability to meet the costs
of procuring the

Technology. This lack of adaptation to new technology has caused the airline to be

Uncompetitive in the market (New Zimbabwe, 2016). As a result, in May 2017 the European

Commission (EC) banned Air Zimbabwe from its airspace (its most lucrative route) over safety

Concerns due to its aged aircraft (eNCA, 2017). Air Zimbabwe also faces intense rivalry after

The Zimbabwean government opened the skies. According to Chipunza (2013), three South

African airlines, namely SAA, Comair and Airlink, now control over 90% of the market share

On the Harare to Johannesburg, Johannesburg to Victoria Falls and Johannesburg to

Bulawayo routes, against Air Zimbabwe’s 10% and this has significantly affected Air

Zimbabwe’s performance.

Cost management often refers to cost cutting and it’s commonly approached that firm managers

Use to respond to the decreasing sustainable profitability (Anderson, 2007). The most important
Managerial tools are cost management strategies (Zengin and Ada, 2010), and cost management

Strategies are considered as critical factors to increase revenue for the success of manufacturing

Companies (Kumar and Shafabi, 2011). Cost management strategy supports decision making
and improves competitive advantage that Results in a better resource allocation (Ellram and
Stanley, 2008). In addition, cost management May be an integral feature of overall businesses’
management effectiveness and facilitate to Determine accurately estimated cost before process
starting and can help to forecast cost Occurrence in the future. Cost management strategy
effectiveness helps to finish the task with the Spending of limited allocated resources and makes
valuable to firms such as working capital Invested reduction, lower cost per unit, and better
quality of the process and product (Groth and Kinney, 1994.

Limited resource and apparent continuous competition influence firms to better managing cost of
Production by implementing standard costing, budget system, monitoring cost information,
andFocusing on value added activities by eliminating non-value added activities through supplier
Coordination, and emphasizing on cost structure by analyzing cost and finding the way to reduce
Costs in the stage of pre-production. Firms with cost management strategy implementation are
Able to know when the amount of cost will incur in the future if they have current and future
cost Information. Thus, managers can make better decision which will positively improve the
Financial performance of firms.

Five independent variables (Management accounting systems) have been used in an attempt

To explain the variance in performance. These five variables are budgeting and planning,

Controlling and reporting, performance evaluation system, decision making system, costing
System.

Disclaimer of Opinion (2014)

Because of the significance of the matters described in the Basis for Disclaimer of Opinion
Section of my report, I have not been able to obtain sufficient appropriate audit evidence to
Provide a basis for an audit opinion. Accordingly, I do not express an opinion on the financial
Statements.

Basis for Disclaimer of Opinion (2014)

Breakdown in internal controls

There was a breakdown in internal controls in the 2009, 2010, 2011, 2012 and 2013 financial
Years. As a result, I was unable to obtain sufficient appropriate audit evidence that the 2014
Opening balances do not contain misstatements that may materially affect the reported financial
Performance and cash flows for the current year. The breakdown in internal controls continued In
the current year and, accordingly, I was unable to obtain sufficient appropriate audit evidence
That the financial statements are not materially misstated.

Existence, completeness and valuation of inventory

The Auditor contracted did not observe the inventory count at year end as he was appointed
Auditor after year end. As a result, I was unable to determine whether any adjustments might
Have been necessary in respect of recorded or unrecorded inventories. International Accounting
Standard 2, Inventories requires inventory to be measured at the lower of cost or net realizable
Value. Due to the absence of perpetual inventory records and purchase invoices, the pricing test
Could not be performed to ensure that inventory was carried at the lower of cost or net realizable
Value. I was thus unable to satisfy myself as to the existence, completeness and valuation of the
Inventories which are stated in the statement of financial position at US$10,126,151.

Unaccounted for MA60 aircraft

The company was using and deriving economic benefits from three MA60 aircraft, which were
Not accounted for in the company’s financial statements. There was neither a lease agreement

Completeness of trade and other payables

Included in trade and other payables is US$26,657,397 for which I could not obtain
Confirmations nor supplier statements. In addition, explanations for a variance of
US$87,276,545 between ledger and amounts confirmed by creditors were not provided. Leave
Pay provision amounting to US$1,424,921 has been static since 2010 due to non-accrual of
Employees’ leave days by the company. The effect of the non-accrual has not been determined.I
was therefore unable to satisfy myself on the completeness and accuracy of trade and other
Payables.

Existence of trade and other receivables

Included in trade and other receivables is US$12,838,394 for which no confirmations or

Evidence of subsequent receipts could be obtained. I was therefore unable to satisfy myself on
The existence and valuation of trade and other receivables.

Unsupported expenditure

Included in operating costs are expenses amounting to US$1,773,732 which had no supporting
Documents. I could therefore not verify the existence and accuracy of the expenses.

Non-depreciation of, absence of supporting documents for additions to and asset

Register for property, aircraft and equipment I was not availed a register for ancillaries and
rotables with a cost of US$14,740,363 and Supporting documents for additions to ancillaries and
rotables amounting to US$110,723. The Ancillaries and rotables were not depreciated during the
year as required by IAS 16. I could

Bank and cash

I was not availed petty cash certificates or disbursement vouchers to prove existence or use of

Petty cash amounting to US$654,587 at the various Air Zimbabwe outstations. The Company
Also had negative petty cash balances amounting to US$720,214 accounted for under trade
Payables which could not be substantiated. I could not obtain confirmations for bank overdraft
And other bank balances amounting to US$3,539,819 and US$725,629 respectively. No
Alternative procedures could be performed to gain sufficient assurance on existence and
Completeness of bank and cash balances.

Suspense account

Included in the Statement of Financial Position under current liabilities is an unexplained

Suspense balance amounting to US$27,965,576. There were no alternative procedures which I
Could perform to validate this balance.

Non-compliance with International Financial Reporting Standards (IFRSs) The Company did not
comply with the standards mentioned below in the preparation of these Financial statements.

IAS 16 Property, Aircraft and Equipment

The standard requires each part of property, aircraft and equipment with a cost that is significant
In relation to the total cost of the item to be depreciated separately. Depreciation for each
Component of items of property, aircraft and equipment with a cost that is significant in relation
To the total cost of the item, has not been separately calculated nor have the residual values and
Useful lives of such assets been reassessed at year end. As per IAS 16, land and buildings are
separable assets and should be accounted for separately, Even when they are acquired together.
The entity did not separate land and buildings which is Contrary to the requirement of the
standard.
IAS 36 Impairment of assets ) Bank and cash

I was not availed petty cash certificates or disbursement vouchers to prove existence or use of
Petty cash amounting to US$654,587 at the various Air Zimbabwe outstations. The Company
Also had negative petty cash balances amounting to US$720,214 accounted for under trade
Payables which could not be substantiated. I could not obtain confirmations for bank overdraft
And other bank balances amounting to US$3,539,819 and US$725,629 respectively. No
Alternative procedures could be performed to gain sufficient assurance on existence and
Completeness of bank and cash balances.

Suspense account

Included in the Statement of Financial Position under current liabilities is an unexplained

Suspense balance amounting to US$27,965,576. There were no alternative procedures which I
Could perform to validate this balance.

Non-compliance with International Financial Reporting Standards (IFRSs) The Company did not
comply with the standards mentioned below in the preparation of these Financial statements

According auditors general report 2018-2019 PROCUREMENT ISSUES

3.1 Payments in ledger but not on supplier statements

Finding

There were payments dating back to 2011 that Air Zimbabwe claims to have made to various
Suppliers but have not yet been acknowledged by suppliers. The payments were made either
Through cash or bank transfers. The following are such examples;

Supplier Total payments $

• 129,773

• 46,600

• 720,910

• 64,028

• 330,000
 • 403,226

• 29,766

• 194,565

Risk / Implication

Fictious payments may be debited to suppliers’ accounts to cover up misappropriation of

funds.Management response Observation is noted. However most payments not reflecting on the
creditors’ statement Have already been cleared by the suppliers. The Airline is currently in the
process of Obtaining detailed ledgers from the suppliers to enable clearance of the outstanding
Payments.

EMPLOYMEMENT COSTS

Statutory deductions and other obligations

Finding

The Company had not been paying statutory and other deductions. As at 31 December 2014, The
company had a cumulative obligation of US$27,285,786 relating to National Social Security The
researcher made the following assumptions before conducting the research:The revenue of
Pathfinder would keep decreasing and costs rising; The cost management system would not be
revised during the course of the researcher`s study; The company`s management structure would
not be restructured.uthority (NSSA), Pay as you earn (PAYE), ZIMDEF, Pension, National
Employment Council And Medical Aid.

Risk / Implication

Financial loss due to fines and interest for non-remittance. Employees may fail to access
essential services.

Recommendation

Statutory and other obligations should be paid up on time.

Management response
Cash flow constraints caused the late remittances or failure to remit the funds. Following
Reconstruction of the Airline on October 04, 2018, all statutory obligations are being Settled.

Payroll reconciliations

Finding

The Airline was not reconciling its payroll to the accounting records. There was an unexplained
Variance of US$478,973 between total payroll costs of US$14,155,906 per accounting records
And the payroll amount of US$13,676,934. I could therefore not satisfy myself regarding the
Accuracy and validity of payroll costs.

Risk / Implication

Fraud and errors may go undetected.

Recommendation

Payroll reconciliation should be prepared, reviewed and approved on a monthly basis.

Statement of problem

Managers of different levels in an organization take several different decisions and actions far
effectively and efficiently realizing goals objectives of the organization in today’s highly
turbulent and intense competitive organizational environment ,the managers and the strategists
have to set strategic goals and objectives, formulate strategic plans ,implement and control them
and make several strategic decisions ,for all this they use reliable and valid accounting
information available in the organization. Air Zimbabwe is currently facing viability problems,
persistent losses and challenges in fluctuating rate of expenditure over income and There is no
balance between the revenue received and costs incurred by the organization, which have
resulted in it not able to pay its debts. The stimuli of conducting this study is based on the need to
understand ways to enhance economic sustainability of Air Zimbabwe through discussing how
cost and management accounting systems can be administered effectively in order to adjust costs
that are negatively affecting the Organization financial performance.

Research Objectives

i) Is to analyze the effectiveness of cost and management accounting systems on firm’s financial
performance.

ii) To examine the relationship between cost and management accounting systems and firm’s
financial performance.

iii) To assess the potential benefits of cost and management accounting to Air Zimbabwe.

iv) To implement monitor review and control the current cost function and report research
findings to the management of Air Zimbabwe.

Main Research Question

i) How does cost management systems enhance the financial performance of Air zimbabwe.

Sub-research Questions

ii) What is the practice of cost and management accounting system at air zimbabwe?

iii) Is there a relationship between cost management systems and financial performance in an
organization?

iv) What strategies or measures can be implemented to improve the financial performance of Air
Zimbabwe through cost management systems?

JUSTIFICATION OF STUDY

To the Company

Air Zimbabwe, as the country’s flag carrier, does not only play an ambassadorial role for the
country but also is a significant driver for the tourism, farming and industrial sectors. Its faltering
performance as a result of the company operating costs outweighing revenue and unable to pay
its debts is a major area of concern since it is the key area which contributed to the slump of the
airline and the above mentioned sectors of the economy will benefit from the revived operations
of the airline after the financial performance has been restored to normality.

This study will help the airline to identify its areas of weaknesses on the cost and management
systems that they are practising at the present moment and they will be able to match their
revenue to their expenditure if the findings of this research are executed, although an airline is
not actually supposed to be profiteer but at least cover its fixed costs and being able to support
other sectors of the economy with their services for example tourism sectors will benefit more
from its operations.

To the University
The research is done in partial fulfillment of the requirements of Bachelor of science Honors
Degree in Accounting at Chinhoyi University of Technology The aim of the study is also for it to
be used by the institution in as a guide in future researches for scholars and academicians
interested in Pursuing a study in accounting and especially management accounting as it will
form a Foundation for other studiesThis study will have useful implications for theory and
practice. Regarding the potential Implications for theory, the study will expand the existing
management accounting the study will provide new empirical evidence on the Use of
management accounting systems .the research will test for a relationship between the use of
management accounting systems and the financial Performance of companies.

To the Researcher

The research allows the researcher to increase some research skills for further Research studies
forthcoming.The researcher will benefit from the research by having a better understanding of
the concept of Cost and Management systems and the impact that it has. The research will also
enable the researcher to make valid conclusions and recommendations on matters concerning the
area of study to relevant parties of concern with the results.

The Delimitations of the study

Is that the research is limited to the financial performance of air zimbabwe only from january
2017 to december 2019 and it is only confined in Harare at robert mugabe international airport. It
also dealt with the management of costs and the costing system;Information being collected from
the employees,senior management ,directors and junior managent.

The researcher made the following assumptions bTefore conducting the research:

• The cost management systems would not be revised during the course of the researcher`s
Study;

• Respondents will give truthful responses that will facilitate reasonable inferences and
deduction

• There are no fundamental changes to the core business activities and management
structure at air zimbabwe

• The research will be carried out and be completed within the time limits (3 Months).
 • Outcomes of the research are going to assist Air zimbabwe and it will act as a reference
for future researches by other scholars and companies

Literature Review

Defining Management Accounting

Management accounting is the production of very long experiences and techniques of the
businesses And managers of the organization that are used information especially financial
information about their Firms for decision making that provided them a competitive edge to the
firms (Ashfaq, Younas, Usman& Hanif, 2014).

Talha, Raja, and Seetharaman (2010) elucidates that management accounting is a Process of
providing financial and non -financial information for managers. Management accounting Is the
science that narrates the supply of suitable financial and non- financial data to make decisions,
Plan, control and evaluate the performance of any aspiring successful organisation (Botes, 2009).

In addition, management accounting is a vital tool for effective Business management as it

provides appropriate information to managers for decision making Regarding the success of the
organisation (Stefanou & Athanasaki, 2012).

Moreover, the main focus of management accounting is to improve the Organization

performance and profitability and assist managers by providing relevant financial and Non-
financial information for making decisions (Ghorbel, 2016). From the various definitions, it can
Be concluded that managerial accounting is concerned with providing information to managers,
that is, To those who are inside an organization and who direct as well as control its operations

Management Accounting systems Defination

According to Ndwiga (2011) management accounting systems are associated with providing
Management solutions for the internal management purposes. Epstein and Lee, (2008) as well
asNuhu, Baird and Appuhami, (2016) are of the view that management accounting practices are
Organizational information systems that provide an organization with relevant information to add
value To its customers and organisations. Management accounting practices facilitates effective
decisions And assist organisations in promoting intended behaviours (Axelsson, Laage-Hellman
& Nilsson,2002, p. 53). Management accounting practices can include budgeting, performance
evaluation, Information for decision-making and strategic analyses costing, among many others
(Gichaaga, 2013).
Management accounting systems

Costing

Research indicates that the information on product costs generated by costing systems has A
wide number of uses. It includes pricing decisions; cost control (Yoshikawa et al 1989; Van
Triest and Elshahat, 2007); an evaluation of production processes; and transfer pricing
(Yoshikawa et al 1989).

The two main costing methods adopted were absorption costing And direct (variable) costing in
previous researches. Absorption costing system is general Preferred globally (Drury et al. 1993,
Scherrer, 1996), Shields et al. 1991). Joshi (2001) Reported half of Indian firms adopted this
technique and Firth (1996) revealed 66% of Chinese Foreign-based companies applied this
technique.

Likewise, the use of direct (variable) costing Is also widespread. Similarly, Abdel-Kader and
Luther (2006) indicated just over 50% of British firms implemented this technique. In contrast,
in developing countries, Firth (1996) Reported an adoption rate of 76 % by locally based Chinese
companies in China. Contrary to The results in European countries and developing countries,
U.S and Australia, results reveal A much higher uptake of Activity Based Costing systems.

Budgeting

Budgeting is perceived as an important control system in almost all organizations (Hansen And
Van der Stede, 2004). The main focus on budgeting has been on uptake rates and the Purposes
underlying its use.Previous research indicates that the main purposes of budgeting Are planning
future performance; planning the future financial position; planning future cash Flows; planning
future day to day operations; and controlling costs (Chenhall and LangfieldSmith, 1998; Abdel-
Kader and Luther, 2006).

Decision Making

Wu et al. (2010), hold that effective decision making is the most important key factor in Today‘s
rapid and changing competitive environment.

The decision support analysis can be Divided into short term and long term analysis. Abdel-
Kader and Luther (2006) argued that for Regular or short-term decisions management
accountants can use cost-volume-profit (CVP) Analysis, product profitability analysis, customer
profitability analysis, and stock control Models. For longer-term capital investment decisions
management accountants can produce And review accounting rates of return and payback
periods as well as complex signals based On discounted cash flow. Capital budgeting techniques
capture both non-discounted and Discounted approaches.

Drury et al. (1991) argued that the superiority of internal rate of Return (IRR) and net present
value (NPV) analysis has been repeatedly demonstrated under Conditions of certainity

Financial Performance

Salter (1995) suggested that performance measurement of corporate and business unit has three
Dimensions: (1) effectiveness, (2) efficiency, and (3) adaptability. Some indicators of three
Dimensions are returns on investment, sales growth, and new product success, respectively.
Furthermore, Salter (1995) argued that relative performance measures appropriate surrogates for
Objective measures in the single-industry sample.

Morgan (2012) suggested that business Performance consists of two aspects: market performance
and financial performance. Market Performance relates to customer behaviors. Higher sales
volume, customer satisfaction increases, Customer loyalty, and growth of market shares are
indicators of market performance while the Financial performance is measured in accounting
terms. This study defines firm performance as a Goal achievement and financial performance
that are indicated by the net income goal Achievement, sales amount and market share increases,
the better return on investment, and the Growth and continuance of overall performance (Chai-
Amonphaisal and Ussahwanitchakit, 2010; Tantiset and Ussahwanitchakit, 2010).

Business operation focus on highest potential profit and a common approach is a cost control that
Is expected to produce the greatest overall financial performance (Healthcare Financial
Management Association, 2012). Cost management strategy implementation success might
Generate value to the firm, for example, the greater control production activities results in better
Quality of procedure and lowers the unit cost of goods and cost variance. In addition, the
Consequence of the cost management success is firm value increasing and profit improvement
That positively affects firms’ value greater than pricing (Groth and Kinney, 1994). Therefore, it
Can be expected that cost management implementation will increase firm performance.

Financial performance measures are intended to evaluate the effectiveness and efficiency by
Which companies use financial and physical capital to create value for Shareholders. The key
recommended measures for financial analysis include: profitability, Liquidity and solvency
(Zenion et al.1999). Profitability measures the extent to which a business Generates a profit from
the factors of production: labor, management and capital. Profitability is Also used as a general
measure of a firm’s overall financial health over a given period of time, And can be used to
compare similar firms across the same industry or to compare industries or Sectors in
aggregation (Copisarow, 2000).

Four useful profitability ratios and measures are the Return on assets (ROA), return on equity
(ROE), operating profit margin and net income. The ROA measures the returns to all assets and
is often used as an overall index profitability and the Higher the value, the more profitable the
business. ROE measures the rate of return on the owners Equity employed in the business. It is
useful to consider ROE in relation to ROA to determine if the firm is making profitable returns
on their borrowed money.

Operating profit margin Measures the returns to capital per unit of gross revenue. Net income
comes directly off the Income statement and is calculated by matching revenues with the
expenses incurred to create Those revenues, plus the gain or loss on the sale of capital assets
(Zenios et al. 1999).Liquidity measures the ability of the business to meet its financial
obligations as they come due, Without disrupting the normal, ongoing operations of the business.