Texas Southern University Chapter 3 Small Fry Design Santa Ana Paper

Texas Southern University Chapter 3 Small Fry Design Santa Ana Paper

small fry inc. did an analysis highlighted in chapter 3 sip.

Small Fry Design Santa Ana, California

Founded in 1997, Small Fry Design is a toy and accessory company that designs and imports products for infants. The company’s product line includes teddy bears, mobiles, musical toys, rattles, and security blankets and features high-quality soft toy designs with an emphasis on color, texture, and sound. The products are designed in the United States and manufactured in China.

Small Fry Design uses independent representatives to sell the products to infant furnishing retailers, children’s accessory and apparel stores, gift shops, upscale department stores, and major catalog companies. Currently, Small Fry Design products are distributed in more than 1000 retail outlets throughout the United States.

Cash flow management is one of the most critical activities in the day-to-day operation of this company. Ensuring sufficient incoming cash to meet both current and ongoing debt obligations can mean the difference between business success and failure. A critical factor in cash flow management is the analysis and control of accounts receivable. By measuring the average age and dollar value of outstanding invoices, management can predict cash availability and monitor changes in the status of accounts receivable. The company set the following goals: The average age for outstanding invoices should not exceed 45 days, and the dollar value of invoices more than 60 days old should not exceed 5% of the dollar value of all accounts receivable.

In a recent summary of accounts receivable status, the following descriptive statistics were provided for the age of outstanding invoices:

Mean	40 days
Median	35 days
Mode	31 days

Interpretation of these statistics shows that the mean or average age of an invoice is 40 days. The median shows that half of the invoices remain outstanding 35 days or more. The mode of 31 days, the most frequent invoice age, indicates that the most common length of time an invoice is outstanding is 31 days. The statistical summary also showed that only 3% of the dollar value of all accounts receivable was more than 60 days old. Based on the statistical information, management was satisfied that accounts receivable and incoming cash flow were under control.

answer the following :

Identify the population for their analysis:_____________________________

Identify the Variable used in the analysis:______________________________

Identify the “scale of measurement” for the variable :________________________

2- if the variable identified in question 1 is the “first” variable, identify a second variable that could have been used by small fry inc. for a meaningful bivariate analysis .

a-Your Second variable :__________________________

b-is your chosen variable discrete or continuous and why ?

c-do you thing the correlation between there two variables has positive, negative or no relationship? briefly explain why ?