War room has contracted with a local university to replace the entire inventory (1,000) of computers and monitors with the Super Zoom 1000, 48" monitors, along with keyboard and mouse for $1,177,200. This is a 10% discount for a large contract purchase. The contract states all the computers must be installed within 60 days and payments will be Net 60 after installation.

Problem:

1. How much will it cost to purchase a large order from the vendors?

2. Does Zoom Computers have the cash flow to make the purchase?

3. How much cash flow will Zoom Computers need to survive 120 days?

4. What recommendations would you offer to the owners of Zoom Computers for raising capital if needed?