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Two entrepreneurs are starting a new business relationship selling new, advanced pool cleaning equipment. Sharon is a mechanical engineer and has worked to develop and
Two entrepreneurs are starting a new business relationship selling new, advanced pool cleaning equipment. Sharon is a mechanical engineer and has worked to develop and supply these innovative devices. Isaac is the entrepreneur who has been active selling and marketing these new devices to the affluent homeowners in the foothills. His store on Stone and Fort Lowell has become a popular location. Isaac started with a $50,000 loan from the Pima Credit Union. Isaac sells the equipment to his customers for $5,000. He also offers credit to his customers accepting 50% down and the remainder monthly at 11% interest. Sharon only accepts cash on her sales. She sells them to Isaac for $3,200. On April 1, Sharon sold 10 units to Isaac ($32,000) and Isaac sold 7 of them to his customers on credit. (Sales: $35,000, 50% cash collection $17,500). . On April 15, Isaac buys 10 more from Sharon ($32,000) and sells them all on credit. (Sales: $50,000, 50% cash collection $25,000). For the following questions, assume that Isaac does not have any other expenses (besides purchasing the equipment), he does not yet have to make payments on his Pima Credit Union loan, and his customers have not yet paid him their monthly credit payments to him. . Who has the highest dollar amount of sales? Isaac Sharon
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