Essays on Trade Discount

Question 1: Why Cartwright Lumber Company needs cash

Despite the profitability of Cartwright Lumber Company, it still faces cash flow challenges. The financial statements indicate that the company has a low balance in its cash account. Profitability does not necessarily mean the firm has a stable cash flow. The income statements indicate that Cartwright Lumber has been profitable in each of the years from 2001. The net income has increased from $31,000 in 2001 to $44,000 in 2003. However, its cash balance has declined in each of the years. Large sales and profitability do not automatically translate into cash flows. The company has large balances ...

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Trade Discounts

The business of purchasing goods and reselling them for a higher price has been around since the dawn of civilization. This type of business is referred to as merchandising, and those who deal in this type of business are known as merchants. There are two main types of merchants; wholesalers and retailers. Wholesalers purchase merchandise from manufacturers and sell it for a higher price to retailers, usually in bulk quantities. Retailers then resell these goods at a higher price to the final consumer. There are, however, instances where a merchandiser is both a wholesaler and a retailer. These two ...

Commercial contract

A report to the Charity’s Managing Director A commercial contract is an official binding arrangement between two or more parties through which they are indebted to carry out or not some given activities. Contracts can be drafted or verbal and designed a formal or informal approach (McKendrick, 2005). Most enterprises develop contracts in drafts to ensure the conditions of agreement are precise, usually looking for valid counsel while setting essential contracts. Contracts can entail all factors of an enterprise, such as recruiting, wages, worker safety, loans, and leases. A breach of agreement happens if one of the associates ...