Big Bob’s Discount Appliances expects sales of $5,000, $5,000, and $10,000 during April, May, and June (big sale in June). To build business, Big Bob…

Big Bob’s Discount Appliances expects sales of $5,000, $5,000, and $10,000 during April, May, and June (big sale in June). To build business, Big Bob lets all customers buy on credit, and all do so. In the past, 50% of Big Bob’s sales have been collected during the month of sale, 40% are collected the following month, and 10% the month after that. If this trend continues, what will be Big Bob’s total cash collections in the month of June? Big Bob expects to have $100 in his cash account at the beginning of June, and his goal is to end each month with at least $100 in his cash account. Big Bob also expects to have a cash flow for June that is minus $300. Assuming that Big Bob borrows to meet short term cash needs, what will be the company’s ending cash balance after financing at the end of June?

Big Bob’s Discount Appliances expects sales of $5,000, $5,000, and $10,000 during April, May, and June (big sale in June). To build business, Big Bob lets all customers buy on credit, and all do…

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