1.

The accounts receivable is an important part of the business; it analyzes the average
number of days it takes to collect an amount. Account payable's role is to complete the
payments and control the expense; it is to analyze the average of the number of days
takes to pay the supplier invoice. Lastly, the inventories are to analyze the average
number of days it takes to turn over a product's sale. These three account titles are
essential in the business; it is the company's basis to calculate if the company is
profitable or not. Additionally, these three account titles are the areas that offer the
possibilities for better cash management.

2. Yes, having too much cash can negatively affect the business. It increases the business
cost of capital and can increase the overall risk by destroying the business value, and
also it lowers the business of return on assets.

3. When a business cannot generate enough cash, the business cannot pay salaries, cannot
spend on marketing, and cannot buy new materials. Therefore, there is a possibility that
the business goes bankrupt.