Large Mart has previously attempted to develop a “study pillow” which would have allowed studentsto upload study material into their

brain whilst sleeping. However, Large Mart has recently discovered that an American company called Bpple already holds a patent forthis

type of device. As a result, Large Mart has given up on its development attempts and decided to sell the Bpple product,which is called

iSLEEP.

ln orderto sell the iSLEEP, Large Mart has rented a second store in Armidale. Large Mart signs a two year renting contract on

1st May 201x. The rentforthe store will be $5,000 per month and the renting contract requires Large Mart to prepay 18 month of rent

through a banktransfer on the day the renting contract is signed.

As soon as the renting contractforthe new store is signed, Large

Mart employstwo UNE students (Chuck and Morgan) to manage a iSLEEP fan-site on Facebook. Chuck and Morgan are each employed for 2 hours
every day ofthe week (7 days a week). Chuck and Morgan start theirjobs on 1st May 201x and will be paid $30 per hour. Chuck and Morgan
will receive theirfirst pay on the 15th June 201 x.

The furniture in the new store is designed and manufactured in Hong Kong. An

important part ofthe store design is a big bed on which customers can lie to test the iSLEEP before purchasing the product. The bed is
delivered on 1stJune 201x. On that day, Larq1e Mart also receives an invoice of $40,000 from the Hong Kong designer/manufacturer ofthe bed.
When the bed was produced in Hong Kong,t e director ofthe Large Mart sales departmentvisited the design/manufacturing team to approve the
final design ofthe bed before the start ofthe manufacturing process. The director decided to visit the design/manufacturing team because

he wastraveling to Beijing and his flight from Sydneyto Beijing stopped in Hong Kong. This allowed the directorto visit the
design/manufacturing team without having to make a separate trip. lfthe directorwould not have travelled to Beijing, he would have

approved the final design via email without a visit. The cost ofthe director’s trip to Beijing was $10,000, and the stop in Hong Kong to

visitthe design/manufacturing team created $500 additional costs. All costs ofthe businesstrip will be paid on 3oth August 201x.

After

the new store is completed, Large Mart orders 40 iSLEEPs from Bpple for a price of $600 per iSLEEP, and these iSLEEPs arrive on 1 st June
201 x, and are paid via bank transfer 10 days later.

-On 3rd June 201x, UNE purchases 10 iSLEEPs forthe library for a price of $2,000

per i_SLEEP on credit. UNE then paysthe iSLEEPs on 1oth June 201x, after deducting an early payment discount of5%from the

invoice.

-On 5th June 201x, Large Mart purchases another60 iSLEEPs from Bpple for a special price of $550. Normally the iSLEEP would

cost $800, but Large Mart was able to receive a volume discount of $50 for each iSLEEP. The iSLEEPs arrive on the same day and Large Mart
paysthis new delivery of iSLEEPs on the next day after deducting an early payment discount of 10%.

-On 8th June 201x, Large Mart

discoversthat2 ofthe iSLEEPsthat were purchased on 5th June 201x are damaged. Large Mart returns both iSLEEPsto Bpple and Bpple returns
the moneythatwas spent on both iSLEEPsto the Large Mart bank account on the same ay.