Joe's Gnome'n Garden on was pretty happy. After 12 years in business he was in a good spot. He just spoke with his tax accountant and everything was in great shape. He had paid his taxes, taken a good year- end bonus, given his employees a nice bonus and had the bank's required $150 ending balance on his books. From Joe's obsession with gnomes since 2007 Joe's Gnome'n Garden supply company manufactured all kinds concrete Gnome home and garden products. Although most think the products were rather kitschy, he sold the stuff about as fast as he could make it. With the good news from his accountant Joe was think about an earlier call from one of his suppliers Joe's supplier told him that as they were a valued long-term customer that if he bought inventory on a quarterly basis that they would reduce his raw material costs and that he would save $216,000 per year. This was a real win-win. The supplier would save money on delivery expenses, and Joe would save money. He had plenty of storage space and it would not be a problem. Joe thought that he could do a lot with an extra $216,000 a year, he had his eye on a new Boston Whaler. Without any additional thought, he said yes, he'd do it. He thought that this would be a good saving and help cut costs on one of his biggest expenses raw materials. For 2020 he estimated raw materials COGS (concrete and mix) would total 28% of revenue. Monthly Sales Est He's got a really good year crew and maintains a rock solid $ 226 K Jan 150 monthly Fixed Expenses. His estimated sales in thousands are included. Feb 150 Joe went back to his purchasing/accounting manager, Mark, and told him Mar 360 en to buy quarterly starting in January. Figure out how much to buy, and he Apr May 1450 told him to do his best to not go below 150k in inventory in any month. Jun 1900 Joe said he wanted to see the quarterly purchasing schedule. Then Joe 2010 said and let me see how this impacts cash flow too, I want to know when I Aug 1800 get my new boat. And don't forget, keep the ending cash balance at $200 Sep 1100 kor the bank will call and give me a hard time. 530 Nov 200 Mark, thinking of the bank, asked Joe if there would be any problem with Dec 170 his line of credit. Joe said no he's got a 300k limit and he never went that 10800 high. I'll be set. I'll be back this afternoon, let me know what you find out. Then he went off to the marina. How will this supplier offer impact Joe's Gnome'n Garden? Jul Oct E Clark Joes Gnome n Garden Joe's Gnome'n Garden on was pretty happy. After 12 years in business he was in a good spot. He just spoke with his tax accountant and everything was in great shape. He had paid his taxes, taken a good year- end bonus, given his employees a nice bonus and had the bank's required $150 ending balance on his books. From Joe's obsession with gnomes since 2007 Joe's Gnome'n Garden supply company manufactured all kinds concrete Gnome home and garden products. Although most think the products were rather kitschy, he sold the stuff about as fast as he could make it. With the good news from his accountant Joe was think about an earlier call from one of his suppliers Joe's supplier told him that as they were a valued long-term customer that if he bought inventory on a quarterly basis that they would reduce his raw material costs and that he would save $216,000 per year. This was a real win-win. The supplier would save money on delivery expenses, and Joe would save money. He had plenty of storage space and it would not be a problem. Joe thought that he could do a lot with an extra $216,000 a year, he had his eye on a new Boston Whaler. Without any additional thought, he said yes, he'd do it. He thought that this would be a good saving and help cut costs on one of his biggest expenses raw materials. For 2020 he estimated raw materials COGS (concrete and mix) would total 28% of revenue. Monthly Sales Est He's got a really good year crew and maintains a rock solid $ 226 K Jan 150 monthly Fixed Expenses. His estimated sales in thousands are included. Feb 150 Joe went back to his purchasing/accounting manager, Mark, and told him Mar 360 en to buy quarterly starting in January. Figure out how much to buy, and he Apr May 1450 told him to do his best to not go below 150k in inventory in any month. Jun 1900 Joe said he wanted to see the quarterly purchasing schedule. Then Joe 2010 said and let me see how this impacts cash flow too, I want to know when I Aug 1800 get my new boat. And don't forget, keep the ending cash balance at $200 Sep 1100 kor the bank will call and give me a hard time. 530 Nov 200 Mark, thinking of the bank, asked Joe if there would be any problem with Dec 170 his line of credit. Joe said no he's got a 300k limit and he never went that 10800 high. I'll be set. I'll be back this afternoon, let me know what you find out. Then he went off to the marina. How will this supplier offer impact Joe's Gnome'n Garden? Jul Oct E Clark Joes Gnome n Garden