Answer:
Explanation: Why did Katherine do better when she raised her prices and refused to sell on credit? Higher prices increase cash flow when the terms are cash and slow the need to borrow funds to buy on credit. ... Katherine had a classic cash flow problem, and, yes, a bank is an excellent place to turn for help.
Katherine instantly increased her pricing and refused to accept credit card payments. She began deferring payments on her bills in order to cover the additional charges.
When the terms are cash, higher prices improve cash flow and reduce the need to borrow money to buy on credit. Too much rapid growth might produce cash flow issues because the expansion is all financed and there isn't enough cash to back it up.
To learn more about credit sales, refer below
https://brainly.com/question/18493120
