Installment Sales
Installment sales $200,000 $250,000
Cost of Sales $150,000 $190,000
Cash Collections $ 60,000 $200,000
Gross Profit $ 50,000 $ 60,000
GP% = sales -cost 25% 24%
Note: Of the cash collections in 1999, one-half came from 1998 sales and one-half from 1999 sales.