CASH FLOW

HAVE YOU HEARD THE RUMOR ABOUT the builder who can't pay his trades, suppliers, or make payroll and isn't selling any houses? What about

But coming late to the idea that "cash is king" won't help much now, says Steven Friedman, national director of home building services for Ernst & Young.

"Builders should have always managed [with a focus on] cash, whether times are good or bad," Friedman says, adding that builders were afforded the luxury of being sloppy with their cash flow during good times. "It's what drives the business. Accrual earnings are nice-it's a way to keep score, it keeps the banks happy-but you can't spend accrual."