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lesya [120]
2 years ago
11

Katherine Potter knew a good thing when she saw it. At least, it seemed so at first. She was traveling in Italy when she spotted

pottery shops that made beautiful products ranging from ashtrays to lamps. Some of the pottery was stunning in design. Katherine began importing the products to the United States, and sales took off. Customers immediately realized the quality of the items and were willing to pay top price. Katherine decided to keep prices moderate to expand rapidly, and she did. Sales in the second three months were double those of the first few months. Sales in the second year were double those of the first year.
Business
1 answer:
lilavasa [31]2 years ago
4 0
  • Katherine had to rush to the bank every few months to borrow more money. She didn't really talk to her banker about her financial situation because she had no trouble getting larger loans. You see, she was always on time with her payments. Katherine always took trade discounts to save money on her purchases. That is, she paid all of her bills within 10 days in order to save the 2% discount offered by her suppliers for paying so quickly.
  • Katherine's products were mostly purchased on credit. They'd buy a few lamps and a pot, and Katherine would let them pay overtime. Some were extremely slow to pay her, taking six months or more.
  • Katherine noticed a small drop in her business after three years. The local economy was struggling, and many people were losing their jobs. Nonetheless, Katherine's business remained steady. Katherine received a phone call from the bank one day, informing her that she was behind on her payments. She explained that she had been so preoccupied that she had missed the bills. The issue was that Katherine did not have enough money to pay the bank. She frantically called several customers for payment, but none of them could pay her. Katherine had a classic cash flow problem.
<h3>How is it possible to have high sales and high profits and run out of cash while running a business?</h3>

It is entirely possible if you have a high level of accounts receivables and inventory and a low level of accounts payables. A sale is recorded when an invoice is raised, and a shipment is delivered; this does not always imply that you received cash and that it is recorded in your accounts receivable. Similarly, if you keep a lot of inventory, a lot of your money is locked up until the inventory is sold. On the contrary, if your payment terms with your suppliers are less favorable, you will end up paying before your receivables convert to cash. As a result, high sales and profits do not always imply a strong cash position.

Learn more about profit:

brainly.com/question/13050157

#SPJ4

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Write down the factors on which supply flexibility is based.
Fed [463]

Now the supply chain flexibility is based make to order strategy, low volumes, low switching costs and low stocks.

3 0
3 years ago
A business rule states "...the name of an employee of Bearcat Incorporated consists of the first name, middle initial, last name
abruzzese [7]

Answer:

composite

Explanation:

A composite attribute is the one which can be sub classified into various categories.

Here, in the given instance the "name" can be sub classified into various categories.

That is the first name, the middle name, the last name.

Here name is sub divided into categories.

Thus, the name can be attributed as a composite attribute, as it is not just a simple attribute.

5 0
4 years ago
You just sold stock for $10,000 which you bought two years ago for $5,000. You are also in the 25% income tax bracket. How much
katrin [286]

Answer:

$1,250

Explanation:

The tax in reference is capital gain tax.

The gain from this transaction is the selling price - the purchase price.

= $10,000 -$5000

=$5000

The gain is $5000

The tax on this gain will be 25% of $5000

=25/100 x $5000

=0.25 x $5000

=$1,250

6 0
4 years ago
Dylan applies for a position with Electrical Works LLC. Dylan’s previous employer, Federal Circuits Inc., gives Electrical Works
tatuchka [14]

Answer:

The correct answer is D

Explanation:

Defamation is the term which states that the statement is false of the fact which exposes a person to contempt, injures him in business or trade, ridicule or hatred.

In this case, Dylan who applies for the position with the Electrical Works and the previous employer gives the company a review which involve negative statements which Federal Circuits know it is untrue.

So, this is defamation, it is by passing a false and negative statement which harm one's professional reputation.

7 0
3 years ago
Monica is going to college full-time to become a nurse, so she has to quit her job at the supermarket. Not having that weekly pa
Nikolay [14]

Answer:

Opportunity cost

Explanation:

Opportunity cost is the sacrificed benefits in decision making. Making a decision involves selecting one option from several choices. The forfeited advantage from the next best alternative is the opportunity cost.

Monica has chosen to join college. She has sacrificed her job at the supermarket to make time for college. Her forfeited weekly pay from her job is the opportunity cost for joining college.

4 0
3 years ago
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