Quote Originally Posted by Jmetz View Post
They moved a heavy volume in a short amount of time. If they can handle their books they'll be just fine. You're selling widgets, and your projected sales for the next 6 months is $6000. There's a run on widgets and you just made $6000 in one month. Is it not safe to say that you should be able to carry yourself through the next 6 months as that's what you were budgeted for? Would it also be safe to say that any further sales of widgets you may get in over the next 6 months is increasing your profit?

I may be all wet, but it seems logical to me.
Only if widgets ordered were received in qty's expected, prices remained at original cost AND OTC sales were not taking 7-10 days to remove from inventory.
IF you continue to sell last months volume, if not your expected sales figures go out the window. Take a hit on new sales due to no inventory and that $6K now has to cover X time frame until restocked. Just because they charge X and made X doesn't mean that amount is constant.
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