State whether the following statements are true or false with brief reasons: Cash flows cannot be managed by improving receivables.

False. Cash flows can absolutely be managed by improving receivables. Effective management of receivables (e.g., through stricter credit policies, faster invoicing, prompt collection efforts, offering discounts for early payment) reduces the time it takes for a company to convert its sales into cash. This accelerates cash inflows, thereby improving the company's overall cash flow position. A better receivable management system directly impacts the operating cash cycle.