Question by Project EX: What does “Sales on Credit” mean for a Business plan?
Hello, i am writting a business plan for my new computer company. One of the key problems i’m having is not being able to talk to anybody who really knows a lot about the subject.
So i have 2 questions:
1. What does “Sales on Credit (%)” mean?
2. What does Less 25% tax mean?
For the question two for example, in another business plan it says 3,843 in projected sales, then the Less 25% tax is only ,846.
Can anybody explain both of these? I’d truly apperiate it.
Best answer:
Answer by CanadianBlondie
I can think of a couple of things that it might mean, but without seeing the whole problem, I’m just guessing.
1Sales on credit could be:
a) A % of all sales that end up as accounts receivable (they didn’t pay you up front, and you extended them credit) – most likely answer
b) The % you have to pay to the credit card company for taking credit cards
2. Less 25% tax…well, 11,846 is 25% of the figure you quoted as your sales figure; it would appear that you are subtracting the tax amount before ending up with a net income amount.
What do you think? Answer below!
Powered by Yahoo! Answers
