Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 24

Body Builders Corporation is opening a chain of five health clubs in the Minneapolis area. Body Builders's marketing manager has suggested a marketing plan designed to generate new memberships. The plan would allow new members to delay payment for the first three months' membership and pay at the end of the first quarter. Thus, the cash flow from membership fees will not occur for three months.
Discuss the implications of this marketing approach for the cash flows of Body Builders.