READ before contacting me (Cash Flow Management Considerations Activity)

Kudler has plenty of room to increase sales while controlling costs. The first place they should start is renegotiating the cost associated with rent in the locations where they already have stores. Since they already occupy the stores and show good payment history, they have leverage in these negotiations. They are currently paying $63,000, if they can reduce that rent by 5%, they would be saving $3,150 which is more than enough to cover their bad debts. They can also drive cost out of the business by paying back debt that has higher interest rates. Currently, Kudler is paying over $63,000 in interest while showing net income of $676,795. Some of that income should be leveraged to reduce the cost of interest. Kudler can utilize these cost controls without compromising the increase in sales.