2% discount on purchases will probably be in favor of Mr. Cartwright, and this can lower the personal debt needs by $12,000. For that reason, the balance sheet will clearly show that its Doing work capital necessities is lessened due to lower price on purchases and it will also Increase the gross revenue margins by way of a lower in Price of products sold.

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Q4.) Does it make sense for Mr. Cartwright to choose the acquisition bargains if he can? How will this have an effect on his funds prerequisites for 2004? What would the money statement and stability sheet seem like if he took the savings for the whole 2004 calendar year?

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