Nice Bakery is a cakes manufacturer that supplies specialty grocery stores. This company has $10,000 cash in its bank account, and we assume that in the first three months its sales are $35,000, $45,000, and $ 50,000 started from January. Cost of foods are 70% percent of sales and its monthly operating expenses are $14,000.

Follow the above information. Now we assume that Nice Bakery has an agreement with its vendors to pay for the ingredients and other supplies it buys in thirty days. But those specialty grocery stores take sixty days to pay their bills.

Understanding the difference between profit and cash is a key to increasing your financial intelligence. Which of the following is not a good example of this knowledge?

	a.	Finding the right kind of expertise.
	b.	Discovering the certain project which makes large profits.
	c.	Making good decision about timing.
	d.	Chasing the chance to improve a companys effectiveness.