- Actual and expected sales are given in table - 40 percent of sales are for cash. Of the remaining, 60 percent of sales, 75 percent is collected in the following month and 25 percent is collected two months after the sale. - This means that 45 percent (0.750.60) of sales collected the following month - 15 percent (0.250.60) of sales collected two months later - Raw materials inventory purchases are equal to 50 percent of the following month's sales (June's purchases are 50 percent of expected July sales). 60 percent of purchases are paid for in the month following the purchase, and the remainder are paid in the following month. - Wages are forecasted to be equal to 20 percent of expected sales - Payments on leases for equipment are $10,000 per month - Interest payments of $30,000 on long term debt are due in June and September - A $50,000 dividend will be paid in June - Tax prepayments of $25,000 will be paid in June and September - $200,000 is scheduled to be paid in July for a capital investment, but management is flexible on the scheduling of this outlay - Must keep a minimum cash balance of $15,000 by agreement with its balance. BB's cash balance at the end of May was $20,000 \begin{tabular}{cc} A & B \\ \hline Month & Sales \\ April & 291,000 \\ May & 365,000 \\ June & 387,000 \\ July & 329,000 \\ August & 238,000 \\ September & 145,000 \\ October & 92,000 \end{tabular}