Question: The marketing department of Singapore's CrownJewel Hotel has projected the following sales in the last half of the current financial year
Most of CrownJewel's room sales are made to corporate clients. Past experience indicates that 10% of room sales are for cash, 50% is collected in the month following the sale, 35% is collected two months following the sale and 5% of sales are to a large company that takes three months to settle accounts. In the past, 30% of restaurant and bar sales have been for cash and 70% have been charged and collected in the month following the sale.