To ascertain the response to this client, find out whether the large inventory, purchase will have any effect on the income statement of client, explain the fact of making payment for the large cash purchase, ascertain whether it is good or bad for using large production of cash available for a purchase like this and say whether the client acted wisely or not.

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Chapter 4, Problem 1SBA

To determine

To ascertain the response to this client, find out whether the large inventory, purchase will have any effect on the income statement of client, explain the fact of making payment for the large cash purchase, ascertain whether it is good or bad for using large production of cash available for a purchase like this and say whether the client acted wisely or not.

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