Kallie and Lisa Wish to Start XYZ Limited Liability Company

question 1

Essay

Kallie and Lisa wish to start XYZ Limited Liability Company.What steps do they need to take in order to establish it?

---

Definitions:

Cash Cycle

The time between cash disbursement and cash collection.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Accounts Receivable Turnover

This ratio measures how efficiently a company collects revenue from its customers by dividing total sales by the average accounts receivable during a specific period.

Credit Sales

Sales transactions where the payment is deferred to a future date, essentially extending credit to the purchaser.