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Question - Budget Shades is also a small business but they have grown fast and now have five locations. Their previous years sales were $250,000 with us and they are growing at 20%. They currently owe us $15,000 and have Net 30 day terms
2019 gross sales 1,000,000
Cost of Product $500,000
Gross Profit $500,000
Using their financial information to the right - please answer the following questions:
1) If they are growing at a 20% rate, what will their total Gross Sales be by the end of 2020 Labor $150,000
2) Are they a profitable company? What helped you make your decision? All other expenses $275,000
3) What does their DSO tell us?
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