Essay Question A UK convenience store chain has embarked on a company-wide initiative to work
predominantly with local, independent farmers to provide fresh fruit and vegetables. The
company is about to refurbish one of its stores to include a loose fruit and vegetable aisle
to reduce plastic waste and it intends to refurbish all stores over time. A spokesperson
said, 'We buy local where we can, and although we are sometimes tied by seasonality and
weather conditions, buying from local producers can minimise the supply chain, ensure
quality control and traceability, and build a strong working relationship with local
producers who are eager to provide a great service.'
Required:
Advise the management of the convenience store chain on how to price its new fruit and
vegetable offering
(Total 40 marks)

Prepare the operating activities section—indirect method.(lo 4), apthe income statement of paxson company is presented here. paxson companyincome statementfor the year ended november 30, 2014sales revenue $7,600,000cost of goods sold beginning inventory$1,900,000 purchases4,400,000goods available for sale6,300,000 ending inventory1,600,000total cost of goods sold 4,700,000gross profit 2,900,000operating expenses selling expenses450,000 administrative expenses700,0001,150,000net income $1,750,000additional information: prepare the operating activities section—indirect 1. accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.2. prepaid expenses increased $150,000 during the year.3. accounts payable to suppliers of merchandise decreased $350,000 during the year.4. accrued expenses payable decreased $100,000 during the year.5. administrative expenses include depreciation expense of $110,000.instructionsprepare the operating activities section of the statement of cash flows for the year ended november 30, 2014, for paxson company, using the indirect method. net cash provided $1,940,000