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Transcription of this question: Strider RetailStrider Retail is a chain of shops that import and sell electrical appliances, including plasma (screen)televisions. The sale of plasma televisions is seasonal, in particular when major sporting events arebeing held. Plasma televisions are expensive. Research has indicated that with improvements intechnology the cost Of importing new models has fallen significantly. Strider Retail expects this tocontinue into the future.The following information shows Strider Retailk purchases and sales Of plasma televisions over asix month period from July 2010 to December 2010.Opening stock of plasma televisions on 1 July 2010: 150@ USS900.Month (2010) Stock purchased Stock soldJulyAugustSeptemberOctoberNovemberDecember(units)100@ USS90075 @ USS850USS82575 @ USS800100@ USS800(units)120907540100120Strider Retail has conducted additional secondary research, which reveals that the product lifecycle for electrical appliances, such as plasma televisions, is getting shorter with new models beingproduced every three months. This research has suggested that Strider Retail may have to reduce itsselling prices much more Often.Strider RetailStrider Retail is a chain Of shops that import and sell electrical appliances, including plasma (screen)televisions. The sale of plasma televisions is seasonal, in particular when major sporting events arebeing held. Plasma televisions are expensive. Research has indicated that with improvements intechnology the cost Of importing new models has fallen significantly. Strider Retail expects this tocontinue into the future.The following information shows Strider Retails purchases and sales Of plasma televisions over asix month period from July 2010 to December 2010.Opening stock of plasma televisions on 1 July 2010: 150@ USS900.Month (2010) Stock purchased Stock soldJulyAugustSeptemberOctoberNovemberDecember(units)100@ USS90075 @ USS850USS82575 @ USS800100@ USS800(units)120907540100120Strider Retail has conducted additional secondary research, which reveals that the product lifecycle for electrical appliances, such as plasma televisions, is getting shorter with new models beingproduced every three months. This research has suggested that Strider Retail may have to reduce itsselling prices much more Often.With so many sporting events being shown on television, the seasonal factors in determining thesales Of plasma televisions are becoming less important. Strider Retail marketing manager thinksthat Strider Retail should move to a just-in-case stock control method, rather than the currentjust-in-time stock control method.(This question continues on the following page)(Question I continued)(a)(b)(c)Define the following terms:(i)(ii)(i)(ii)(iii)secondary researchjust-in-time stockCalculate the closing stock value for Strider Retail at the end OfDecember 2010 under FIFO and LIFO using a table to clearly identifyfor each month the number Of plasma televisions purchased, sold andstock remaining.Comment on the implications for Strider Retail Of using LIFO as amethod Of valuing its stock.Briefly explain one advantage and one disadvantage for Strider Retail Ofusing the just-in-case stock control method for plasma televisions.Analyse the impact Of a shorter product life cycle for plasma televisions onStrider Retail S cash flow.[2 marks][2 marks][8 marks][3 marks][4 marks][6 marks]

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