第3章节-练习题.pdf

ros3059X_ch03.qxd 12/27/05 05:16 PM Page 80 /rwj Use the following information to answer the next five questions: A small business called The Grandmother Calendar Company began selling personalized photo calendar kits. The kits were a hit, and sales soon sharply exceeded forecasts. The rush of orders created a huge backlog, so the company leased more space and expanded capacity, but it still could not keep up with demand. Equipment failed from overuse and quality suffered. Working capital was drained to expand produc- tion, and, at the same time, payments from customers were often delayed until the product was shipped. Unable to deliver on orders, the company became so strapped for cash that employee paychecks began to bounce. Finally, out of cash, the company ceased operations entirely three years later. 8. Product Sales Do you think the company would have suffered the same fate if its product had been less popular? Why or why not? 9. Cash Flow The Grandmother Calendar Company clearly had a cash flow problem. In the context of the cash flow analysis we developed in Chapter 2, what was the impact of customers’ not paying until orders were shipped? 10. Corporate Borrowing If the firm was so successful at selling, why wouldn’t a bank