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Collecting Cash after a sale

Posted on 2010-09-18
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Last Modified: 2012-05-10
Big Bob's discount Appliances expects sales of 5000, 5000, and 10000 during April, May, and June. Bob let's his customer's buy on credit. 50% of Bob's sales are collected during the first month of the sale, 40% next month and then 10% the month after that. Let's suppose this trend continues. What will Bob's sales be for the month of June? I think it will be 7500. What do you think?
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Question by:dlewis61
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Expert Comment

by:aburr
ID: 33708959
The statement of the problem says that the sales for June is 10000.
Do you really want to know what the income for June is?
If the trend continues the problem implies that after four and five months He will still be collecting 10%. By the end of the year he will have collected more than 100% of sales. I would like that king of deal. (Let us assume that the final 10% is a bad debt.)
In June bob collects April (5000) 10% + May (5000) 40 % + June (10000) 50%
does that add to 7500?
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Author Comment

by:dlewis61
ID: 33709004
aburr, check out the spreadsheet. the percentages "lag" for one month...
 
experts.xlsx
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Accepted Solution

by:
aburr earned 450 total points
ID: 33709109
The spread sheet shows just exactly the calculation which I did and which agrees with your answer.
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Expert Comment

by:Daxit
ID: 33709196
Hello

I really do not understand your question, can you try to formulate it in another way or to explain it further?

Are you meaning  that the Big BOb' sales trend is continuing in this way so that every two months he doubles the sales?

Well in the third month he collected 7500 as you calculated and in the 4th month he should sell for 10000 and collect 9500

In the 5th month he should sell for 20000 and collect 15000
In the 6th month he should sell for 20000 and collect 19000
In the 7th month he should sell for 40000 and collect 30000


Is this what you mean????? What is "lag"????

Bye
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Assisted Solution

by:Daxit
Daxit earned 50 total points
ID: 33709680
I inadvertitely clicked submit instead of Object, sorry for this, hope that an admin can fix that

Sorry.

Here below my objection...

Hello

I do object that the question is sort of badly formulated and not really clear, it seems a very easy math problem and I  exactly answered, but also tried to go deeper in the matter asking for a reformulation of the answer or better explications.

This are the answers received that the author consider to give 450 points:

1) " that after four and five months He will still be collecting 10%. "

????-- Yes but of the further sales not on the fully collected ones as in the example interests are not considered !!! --????

2) "By the end of the year he will have collected more than 100% of sales"

????-- Why? there are no interests in the example !! --! ???

3) "(Let us assume that the final 10% is a bad debt.)"

???--- Just do not understand this ---???

4) "In June bob collects April (5000) 10% + May (5000) 40 % + June (10000) 50%
does that add to 7500?"

???--- Here the question is redirected to the author again, is it an affirmative answer or a question? --????

The author then posts a spreadsheet in which is present a grid showing the calculations......
A sort of "you said it, I also said, we both said it, must be so" comment is added.

Finally just after my comment the author, ( did not give any further information or explication, did not answer nor precised anything), suddenly have the urge to assign 450 points to the answers above,  50 points to me and finally wants ALSO to close the question.....

Why this?

So to start with I say that I gave the correct answer and also questions to clarify the original enigma and that I deserve the points.

Furthermore I guess is better to close the question as it seems embarassing for the board and the partecipants too at this point.

So I suggest to close it without any points for everybody, or to close it with the 500 points for me, or to leave it posted as usual and the 500 points for me.

Bye
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Expert Comment

by:aburr
ID: 33709747
"???--- Here the question is redirected to the author again, is it an affirmative answer or a question? --????"
Of course the question is redirected to the author. It is a homework type question.
The explicit working was given so the author could check the work.
Points 1, 2, and 3 were explicitly pointing out the wording difficulties of the original question.
(and then the best guess at the original question was answered in detail.)
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Author Comment

by:dlewis61
ID: 33709851
Uhhh..no daxit. I think I awarded the points fairly.

I'm sorry the question was such that you didn't understand it. I had done the calculations and Was asking for confirmation from someone via EE. I submitted the spreadsheet to clarify to ABURR how I got it.

I've been on this paid forum for years, and this is the first time I've EVER heard of anyone objecting. How is it my fault you didn't understand the question??

I hope that my points award stands. I think it will.

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Expert Comment

by:Daxit
ID: 33709865
Hi

Ok, Sorry, but I am asking myself what the author is doing with the points splitting and especiallly about the fact of closing te question instead of answering, clearing and completing the thread as usual. Normally people shows interest about the questions that they posted.

Furthermore the problem it is far too easy , the possible projection to see what would happen if the "trend continues" did not interest him at all, the very fast immediate response after all is just "let's give all this points, no further discussion etc.. and CLOSE the question".    Why?

It sounds all very unusual and strange to me.

I ask myself if it is possible that in future I can see a question ending alike "is a banana yellow?" " Yes it is yellow, isn'it?" and then see somewhat alike " Ok let's assign the points and ALSO close the question...."
Wow...
I just let it to the administrators. I do not want to comment any further from now on...
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Author Comment

by:dlewis61
ID: 33709881
You don't have to comment Daxit. The clarification came with the spreadsheet I submitted, that's how I got the answer.
Frankly the fact that you say the question is far too easy is insulting. I pay a fee just like anyone else for this service. Maybe it's easy for you, but no so for others. Maybe I should check the questions and answers you have you moniker associated with and make that same judgment, eh?
And it was a quick close because ABURR confirmed my answer!!

Administrators: I thought it was UP TO ME who gets the points??? If this is not the case please advise. Perhaps this exchange isn't for me anymore if I have to go thru this trial when I need assistance!!


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LVL 7

Expert Comment

by:Daxit
ID: 33709962
Hi dlewis61

I am not wanting to insult anybody, the fact that the question is so easy does not mean at all that you do not understand it. I am sure of the opposite instead.

In any case anyone has the right to ask whatever, even very easy things of course, you are right about this.

If you feel alike you can check my answers and questions, why not?

The reason for which I objected is that you asked to close the answer.
Can you, in peace, explain me why?

Was not easy to just assign the points as usual?

The natural procedure is to assign points the way you feel alike, just as you write above, not to close the answer.

Bye
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Author Comment

by:dlewis61
ID: 33710005
Did I not follow the correct procedure?? I got the confirmation I needed, awarded points and I thought closed the question because I got the answer I needed. Is that not correct?

Close the answer? I accepted ABURR's response. I gave you 50 points, and ABURR the 450. You didn't understand the question. It sounded like ABURR did.

I don't get it, am I missing something here? Maybe so. I'll go back and check what I did.
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