Fisher's Bait & Tackle is near the entrance to the State Park's Boat Launch site for a popular, plentiful mountain river network. Customers typically arrive in the early morning hours before a launch and purchase any supplies and equipment they anticipate needing on the river that day, although both large and small-ticket item sales happen at any time during the day, and store browsers are not uncommon (especially if the weather is poor). The shop does not take customer orders, but on phone request will occasionally "set aside" an item for a known regular customer for their pickup later in the day.
"Setaside" items not sold by the end of the business day are returned to regular sales stock. Single sales transactions can be a single item, such as fishing line, a lure or bait, or many different items, including fishing poles, tackle boxes, fishing boats and oars, and miscellaneous grocery items. All sales are paid for at the time the customer cashes out, and while cash is preferred, Fisher's does accept all major credit cards. Fisher's does not have a store credit card, but does have a Famous Fisher customer loyalty card.
Customers using the Famous Fisher card receive coupons toward future purchases on their current sale receipt. The Famous Fisher loyalty card register contains name, address, phone, and email addresses for each program participant, and links to their purchase transaction history. Company sales records contain information about each customer's purchase transaction history: date of sale, Fisher's stock numbers for items sold, quantities, unit prices, sales tax and transaction total, payment method. Transaction data for walk-in customers (not participating in the Famous Fisher customer loyalty program) are combined under a "walk-in" customer category. Fisher's maintains several accounts at Two Rivers Bank & Trust.
Sales deposits are made to the main checking account for each day's sales. Fisher's orders its merchandise (locally-raised bait and mass-produced fishing equipment, both fly and traditional) from various suppliers. Company records contain information about a contact person at each supplier along with all required address information. Each purchase order has the order number, date, and expected transaction total. Purchase orders also contain the following information for each product ordered: vendor's stock number, description, and price. The store manager places orders by fax several times a day, whenever she notices that an item is running low. Some suppliers fill each individual order separately. Others, however, consolidate orders and fill all of them in one weekly delivery. Suppliers never make partial shipments; if they are out of stock of a certain item, they wait until they obtain that item and then ship the entire order. Some suppliers require payment at the time of delivery, but others send Fisher's a monthly billing detailing all purchases during the current period. Two suppliers allow Fisher's to make installment payments for any individual purchase order that exceed $20,000. All payments are made from the company's main checking account at Two Rivers Bank & Trust.
Instructions:
1. Create the REA diagram for Fisher's Bait & Tackle's Revenue Cycle.
2. Create the REA diagram for Fisher's Bait & Tackle's Expenditure Cycle.
3. Using the cycle REA diagrams prepared for parts 1 and 2 of this exercise, create the integrated REA diagram for Fisher's Bait & Tackle's Revenue and Expenditure Cycles.
4. Using the data above and the results of your integrated REA diagram for part 3, develop a set of tables to support the integrated processes and data requirements for Fisher's Bait & Tackle.