Management of Working Capital

View the following video: http://searchcenter.intelecomonline.net/playClipDirect.aspx?id=4870EEC7664070BB9D6744FDA7325EE44F45E0E47862343D60FAA8E3325D1A83C46D5C6FAB3D01A758FA30144214BB3D

It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks:

How you would describe his working capital practices, including my methods of capital budgeting analysis techniques?

What are potential pitfalls in my Capital Budgeting practices that I should be aware of?

Develop a simple Statement of Cash Flows for George’s Trains using any information gleaned from the video. What areas of improvement do you recommend? Use at least three scholarly resources