Your On-Line Bookstore Is in Direct Competition with Amazon

question 41

Essay

Your on-line bookstore is in direct competition with Amazon.com, BN.com, and Borders.com. Your company s daily revenue in dollars is given by where x , y , and z are the online daily revenues of Amazon.com, BN.com, and Borders.com, respectively. If Amazon.com and BN.com each show a daily revenue of $2,000, give an equation showing how your daily revenue depends on that of Borders.com.

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Definitions:

Statement Of Cash Flows

A firm’s financial statement that summarizes its sources and uses of cash over a specified period.

Accounts Receivable

Unpaid customer accounts for delivered goods or services to a company.

Operating Activities

Activities related to the daily operations of a business, such as selling products, managing costs, and paying employees, as reflected in the company’s cash flow.

Source Of Cash

Any activity or operation that brings money into the organization, increasing its cash availability.