100 words and reference 
Brandon 

A firm can minimize cash collection timelines by establishing collection centers or utilizing lock box systems. Some of the costs associated with these collection systems can present itself in types of floats, the operating cost of the collection system, and the operating cost of managing the system. We as individuals do worry about cash collection systems implemented as it determines how us as customers deliver payment to the company. In an over the counter collection system, for example, customers deliver payment directly to a firm, without any float like mail float. Other systems like pre-authorized payments require the customer to have the available funds for when the payee initiates the value transfer from the payer. Pre-authorized payments allow for improved forecasting from both the payer and the payee, since there is a predetermined amount and date for when the transfer will occur. 

Capital structure decisions affect the control of a firm by impacting the amount of risk and returns that equity owners can expect to receive from the company. Balancing debt and equity affect risk and cash flow, which would affect the amount an investor is willing to pay to invest in a company. 

Sales can be used to develop pro forma financial statements as a part of pro forma income statements. Sales - variable costs will present the contribution margin, indicating how much additional revenue is generated by making each additional unit after a company has reached its breakeven point. 

References

Chapter 18 “Working Capital Management” from Finance by Boundless

TheFinanceCoach1. (2012, June 25). Session 10: Objective 3 - pro-forma financial statements and project cash flows. YouTube. Retrieved September 29, 2022, from https://www.youtube.com/watch?v=9GmekZcOwxQ

Second 

Chena 

Considering cash collection items, a firm can minimize its time by making preauthorized payments. During a preauthorized payment, the payee initiates a transfer from the payer through the banking system. This collection system eliminates the mail float, reduces processing and availability, and improves both parties' forecasting ability (Chitkara, n.d.). Some of the costs associated are transaction fees, and temporary holds. We worry about this as individuals as well when paying mortgage, or insurance premiums. 

Control issues impact decisions on how to raise money for a company. Capital structure decisions affect the control of a firm. Capital structure decisions affect risk, and cost. It also affects free cash flow. When making capital structure decisions, companies should evaluate their need for capital, determine their liquidity level, get a credit rating, and develop a clearly defined decision-making framework (Capital Structure Decisions – Importance, Factors, Tips and More, 2022). 

Sales can be used to develop proforma statements. Proforma statements project operations for future years. They are the first step in evaluating proposed investments. Current sales are used to calculate future sales. Current sales determine projected growth rates to achieve a projected revenue. 

Thank you, 

Chena Cross 

Capital Structure Decisions – Importance, Factors, Tips and More. (2022, May 26). Retrieved September 29, 2022, from https://efinancemanagement.com/financial-leverage/capital-structure-decisions  

Chitkara, Neeraj. (n.d.). MANAGEMENT OF CASH. Retrieved September 29, 2022, from https://learn.umgc.edu/content/enforced/450033-001018-01-2202-OL4-7980/cashmanagement-120809012912-phpapp02.pdf?_&d2lSessionVal=pnztKK8cjdYAvSWxVRA72ym7c