Collecting Cash after a sale
Posted on 2010-09-18
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?