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Procter & Gamble's Introduction of All-Temperature Cheer Laundry Detergent in Japan

question 69

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Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first.The problem was that Japanese women wash clothes in cold water- either tap water or leftover bath water-so they don't care about all-temperature washing (which is a big selling point in the U.S.) .Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding.However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener) .P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures.Which of the following might have helped P&G avoid the initial problems with Cheer?

Understand the adjustments made to net income in computing cash flows from operating activities using the indirect method.
Recognize transactions that do not affect cash and how they are reported.
Comprehend the impact of changes in current asset and current liability accounts on cash flows from operating activities.
Understand the classification of different types of cash flows in the statement of cash flows.

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