Answers to End-of-Chapter Questions

Company Credit Assessment: For the Cartwright Lumber could get 2% discount payment within 10 days from suppliers, but it had taken few purchase discount because of the shortage of funds, while there was no bad record of lagged payment, so the company still owned good credit assessment.

For this reason, we have to go further and know the points throughout our buyer’s journey, so as to influence, drive conversions and finally move them to the sales region. We try our best to know the customer’s motives, pain points and also when they get stuck in their buying journey, so that we can help by providing information and assistance to unstick them and for the customer to propel forward. The credit program offered at John Deere Company serves as a marketing tool to invite more clients, as people always prefer a place where they get credit facilities and where they can always obtain goods even without the whole product amount, for them to pay later, after a specified period of time agreed with the seller. The credit program would also benefit the company through the increased returns that it will provide, as it is clear, with the credit programs, the final pay is always larger as compared to the payment that would have been paid, if the client was to pay for the product instantly, the whole amount. Demographical factors(Kotler, P. (2011), referring to the changes in the science of population or the number of people in specific locations, demographic factors are also affecting the buying behavior of consumers and also lead to a whole new group of target market, in this case, women, afro Americans and Hispanics.

Explain the visual process, including the stimulus input, the structure of the eye, and the transduction of light energy.

1. Their uses of cash were primarily used for paying off debt and investing it in marketable securities. Also they spent some of their cash on fixed assets. Even though their ending cash was lower than the previous year, they were using their cash effectively.

The likelihood of close relatives sharing the same recessive alleles is greater than in the general population, raising the risks that a child would be homozygous recessive for a trait.

In a contract for the job of Credit Controller the main points that would be included are:

The cash account is a balance sheet account and is in the liquid funds accounts It is important for the system be able to discriminate between balance sheet accounts (real accounts) and income statement accounts (nominal accounts). This classification is important for closing purposes and also for developing the financial statements. The account classification (liquid funds) is also important for the system when developing the financial statements.

* Precautionary Motive - cash is a relatively safe investment.  Cash investments rarely lose value (as can stocks or bonds) and are therefore held for safety reasons in a balanced portfolio.

Industries often have an established company that is a price leader. When competitors “meet” the leader’s price, the competitor is pursuing a ______?_____ strategy? B

* We want to maintain a safe cash balance in order to meet short term obligations.

Even though most of these expenses are not of big magnitude their value can add up and affect the company’s finances. Some of these items are accrued time for employees, bonuses, benefits, utilities, improvements and taxes. Some additional sources of working capital include; cash reserves, profits, equity loans, line of credit, and long term loans.

credit and payment policies as opposed to sales agents who do not purchase the merchandise and

If A/P increases from one year to the next, that means that the difference between the two amounts is cash that was available for current use. That is, instead of paying cash, whatever was purchased was put on an account. On the other hand, A/R is considered a use of cash because for every dollar that should be coming in to the company from those who owe the company money, that cash has been delayed for a collection time period. Therefore, the company does not have the money to use for its own operations.

asset. Hence, cash flow statement is very important in personal finance because it tells a person

thus minimizing the amount of currency that the Company has on hand at any point in time during the week. Additionally, the use of the bank on the daily basis facilitates the control of cash because it creates a double record of all bank transactions - one by the Company and one by the bank. Also we recommend that all receipts be deposited in the