This is the knowledge/expectations stage of the hierarchy of effects, because Linda is now aware of the product and is starting to learn about it.
The hierarchy of effects is:
1. Awareness - know the product exists
2. Knowledge- learn about the features of the product
3. Liking - make sure the customer likes the product and if not, figure out why
4. Preference- customers want your product over other brands
5. Conviction- the decision to make the purchase
6. Purchase - actually going out and buying the product
Answer:
a) I used an excel spreadsheet since there is not enough room here.
b) Net income = $8,950
Cash flows form operating activities =
Net income $8,950
Adjustments to net income:
- Increase in account payable <u> $250</u>
Net cash from operating activities $9,850
Net income is lower because a company must record revenues and expenses when they happen, not when they are associated with cash flows. This is why a company that makes all credit sales might have a large profit, but a small amount of cash (the opposite of this situation).
Psychologists usually attempt to determine whether or not data supports a hypothesis through the use of statistics which means gathering/collecting all data facts and important information.
