Molly should choose top coats as the new supplier.

Top Coats offers 45 days credit term compared to Jolly Jackets 30 days credit term. The extra 15 days means Molly’s business has more time to accumulate cash from sales before paying the supplier, which helps improve cash flow and reduce financial pressure of the business.

Secondly, Top Coats allows returns of defective goods at no extra charge. However, Jolly Jackets requires the buyer to pay all shipping costs for returns. By choosing Top coats, this would help Molly’s business from additional expenses, helping to maintain a higher gross profit margin for the business.

Lastly, customer reviews from Top Coats says that top coats provide very good quality clothes.Jolly Jackets, on the other hand, has some customer complaints about product not being available. By choosing Top Coats, Molly’s business can consistently provide high quality clothes to customers, building trust with them and they would keep coming back and support the business in the future.

Molly should choose Top Coats.

Top coats offers a longer credit term of 45 days, 15 days more than Jolly Jackets. Having a longer credit term, gives Molly’s business more time to sell the coats before paying Top Coats. This improves liquidity of the business.

Top coats allows Molly to return goods without having Molly to pay extra shipping fees, while Jolly Jackets expects the buyer to pay the shipping costs for returning goods. This lets Molly return defected or unpopular goods without incurring extra expenses. This helps Molly’s business in managing its inventory.

Top Coats has a local warehouse and brick and mortar shop while Jolly Jackets only do online sales. Top Coats allow Molly to inspect the goods before purchasing and in the event that Molly needs extra stock, it is faster and easier to get them due to Top Coats having a local warehouse.

Therefore, Molly should choose Top Coats

Molly should choose Top Coats

Top coats provides no charges for returns while Jolly Jackets charges shipping costs for returns which discourages customers into purchasing from Jolly Jackets. Top coats does not require additional fees other than the cost of the item itself. Which makes Top Coats a ideal supplier.

Top Coats has a physical shop and a warehouse and Jolly jackets only has online platform. Top Coats is better as customers are able to try on before purchasing so as to not make wrong purchases. While Jolly jackets has a online store which maybe discouraging as products may not come out from what you see online. Top Coats has a physical presence which provides better reliability and convenience

Top Coats is a new business in the industry and has already gotten good feedbacks from customers while , Jolly Jackets may have been operation for a long time but it was said that items are sometimes unavailable. It is important for Molly to have the products all the time as to make income and make more sales. This makes Top Coats more reliable, as Molly can quickly access products when needed, whereas delays from Jolly Jackets may disrupt supply.

I would recommend Molly to choose top coats as the new supplier.

Firstly, Top coats has a local warehouse that Molly can go into to have a look at the inventory to see whether if they are willing to buy from top coats. Being able to check the inventory up front, gives Molly to see the inventory in the original quality. Once Molly receives the inventory, she can make a judgement on whether the quality of the goods are the same as what she had seen in the local warehouse. However, jolly jackets only does online sales for their inventory and the only way Molly is able to make a judgement on the goods before buying it, is through customer reviews. This causes Molly to possibly have doubts on the quality of goods and whether the coats she received is true and not a fake.

Secondly, when Molly finds out some of the inventory that she had received is damaged, she can make returns to top costs with no extra charges needed to be done. Whereas, for jolly jackets, she would have to pay for all the shipping costs to return the jackets back to jolly jackets. This leads to Molly to have an increase in expenses, reducing her profit for the year. Thus, returning back goods to top coats, will be much more beneficial to Molly and will not affect her profit in the current financial period.

Lastly, top coats offer longer credit terms of 45 days than that of jolly jackets of 30 days by 15 days. Even though top coats will not offer Molly any cash discounts, Molly will get a longer period of time to sell the goods to her customers and be able to have enough cash to pay for what she owes to top coats. Having given a longer credit terms of payment, also shows Molly that top coats are stable with their business financially and is not in a rush to get back the payment from Molly immediately after purchase. While, jolly jackets only provides a 30 day credit terms of payment, showing that they are not so efficient in managing their finances as a business.

Trade payables

Molly should choose Top costs

Top costs give 45 days credit term which is longer than Jolly Jacket by 15 days . This means Molly can take more time repay the supplier which allow the business to the money for other purposes.

Top cost has local warehouse and physical shop.This mean that Molly can check the quality of the goods before purchasing from them whereas Jolly Jackets is a online business that means she can not check the quality of the goods before purchasing.

Top cost has no charges for returning products . This mean there will not be additional expenses to return the product whereas Jolly Jacket has additional charges for shipping the products back to the goods.

Molly’s business should choose Jolly Jackets over Top Coats.

Top Coats sells a coat for $30, while Jolly Jackets sells at $26 per jacket for orders less than 20 and for over 20, it is $25 a jacket, this $4-5 difference allows Molly’s Business to reduce cost of sales and earn higher gross profit.

Jolly Jackets offers online services, compared to Top Coats which only have a local warehouse and physical shop. This shows that Jolly Jackets can reach a bigger audience by promoting products online and also allow Molly’s business to order anytime,anywhere without needing to visit a physical store, which saves travelling costs. Jolly Jackets is able to quickly updated latest products and run discounts, allowing Molly’s business to benefit from the latest deals immediately.

Jolly Jackets has been in operation for over 10 years, this shows that they have more experience and naturally having a bigger customer base compared to Top Coats which is a newly established business , having less experience also. Molly’s business can also seek advice from Jolly Jackets regarding products promotion etc.

Molly’s business should choose top coats

Top coats offer a longer credit terms which allows Molly more time to sell the coats before paying the supplier. This improves Molly’s business’s cash flow as she can generate revenue from sales before settling the supplier.

Molly’s business can avoid additional expenses as top coats offer free returns if there are too much stock or it’s faulty whereas jolly jackets will increase additional expenses on returning the stocks which increase the total business expenses.

Top coats has a physical location which makes it easier to resolve issues in person, ensuring reliability in supplying for Molly’s business. This means there will be no issues for Molly’s business when it comes to lower inventory supplies.

I would advise Weng to rent the ovens.

Firstly, the monthly rental for each oven is $75, which brings to the total rental cost per year for each oven is $900. This is cheaper by $3100 than buying each oven for $4000. Furthermore, if Weng is to buy the ovens, he would need to take up a loan with 3% per annum. This brings Weng to have additional liabilities if he were to buy the ovens.

Secondly, the repairs and servicing of the ovens are included in the rental costs. However, to buy the ovens, there is additional costs for servicing of $50 per oven and that Weng would have to hire an engineer to make any repairs to the ovens. This brings Weng to have additional expenses if he were to buy the ovens instead. Therefore, renting the ovens will be more convenient for Weng, in expenses to maintain the ovens.

Lastly, the insurance cover for the ovens are also included into the rental costs whereas buying the ovens will bring Weng to make his own insurance arrangements instead. Renting the ovens will be more convenient for Weng by providing the necessary costs inside the rental cost and that he would not need to have additional expenses to maintain the ovens. Therefore, renting the ovens will bring the expenses to a minimum as compared to buying the ovens, leading to the profit for the year to be as high as possible for every financial period.

Firstly, by renting new ovens helps to reduce the money spend, which helps the business's profit to increase. If the business buy the ovens, they would need to spend $4000, which has a life time of 4 years. If he rents the ovens for the same amount of time which is 4 years, he could save $600 more. This helps the business to have easier cash flow management, where money spend from not buying the ovens can be used for other business needs.

Secondly, the business does not need to bear with problems like depreciation. Since the ovens are rented and not owned, the business does not have to account for the loss in value over time.

Lastly, renting gives the business flexibility. If the ovens does not have good quality, the business can choose not to renew the rental agreement. Additionally, if the ovens were bought, the business would be stuck with them and unable to easily switch to better ones.

I would recommend Molly’s business to choose Top Coats.

Firstly, Top Coasts offers a longer credit term of 45 days compared to Jolly Jackets' 30 days. This gives Molly's business an additional 15 days to settle its bills, allowing more time to manage cash flow and make payments.

Secondly, Top Coasts has a local warehouse and physical shop, which allows Molly's business to check the coasts themselves to see if the coasts meet the required quality standards. Whereas, Jolly Jackets only sells online, so Molly's business cannot easily verify the quality of the products before purchase.

Lastly, Top Coast does not charge for returns, whereas Jolly Jackets requires Molly's business to pay for all shipping costs when returning jackets. This means Molly's business can return products to Top Coast without extra expenses.

I would advise Weng to rent the new ovens for the business.

Firstly, by renting new ovens helps to reduce the money spend, which helps the business's profit to increase. If the business buy the ovens, they would need to spend $4000, which has a life time of 4 years. If he rents the ovens for the same amount of time which is 4 years, he could save $600 more. This helps the business to have easier cash flow management, where money spend from not buying the ovens can be used for other business needs.

Secondly, the business does not need to bear with problems like depreciation. Since the ovens are rented and not owned, the business does not have to account for the loss in value over time.

Lastly, renting gives the business flexibility. If the ovens does not have good quality, the business can choose not to renew the rental agreement. Additionally, if the ovens were bought, the business would be stuck with them and unable to easily switch to better ones.