#1 (Chapters 1,4,5) Saved Help Save & Ex Ellis Electronics Company's actual sales and purchases for April and May are shown here, along with forecasted sales and purchases for June through September. April (actual) Sales $480,000 Purchases $146,000 May (actual) 460,000 136,000 June (forecast) 435,000 136,000 July (forecast) 435,000 196,000 August (forecast) 450,000 216,000 September (forecast) 490,000 186,000 ces The company makes 10 percent of its sales for cash and 90 percent on credit. Of the credit sales, 10 percent are collected in the month after the sale and 90 percent are collected two months after. Ellis pays for 40 percent of its purchases in the month after purchase and 60 percent two months after, Labour expense equals 30 percent of the current month's sales. Overhead expense equals $13,600 per month. Interest payments of $38,000 are due in June and September. A cash dividend of $58,000 is scheduled to be paid in June. Tax payments of $26,600 are due in June and September. There is a scheduled capital outlay of $460,000 in September. Ellis Electronics' ending cash balance in May is $28,000. The minimum desired cash balance is $23,000.