1) You own small business which produces high quality cut flowers. When you have many customers your largest buyer is Blooming Smart Ltd, a large retail outfit with national chain of outlets which accounts for 50% of your orders on average. Blooming Smart Ltd has now requested that you extend credit terms to them better than what you offer to your other buyers.

i) How could this affect your operating cycle?

ii) Do you see anything ethically wrong with what Blooming Smart is trying to do?

iii) What would be your strategy(ies) in dealing with this?

Requirements: Min Pages: 1

2) Shark and Bake Corporation had the average daily cash balance of= $1,300. Total cash required for the year is= $43,000. Interest rate is= 5% and replenishing cash costs= $8 each time. What do you believe of Shark and Bake Corporation strategy?

Requirements: Min Pages: 1