Projected sales for the coming year :
The collection history of the Hale Company has been as follows 20 % of sales are collected in the month of the sale . 60 % of the sales are collected in the month following the sale . 12 % of the sales are collected in the 2nd month following the sale . 5 % of the sales are collected in the 3rd month following the sale . The following information regarding costs is available : The cost of goods sold is 54 % of sales Items for sale are purchased in the month of the sale .
80 % of accounts payable are paid in the month following when the cost is incurred .
20 % of accounts payable are paid in the 2nd month following when the cost is incurred .
Wages are 28 % of sales and are paid currently
Annual general and administrative costs are $ 1,411,200 and are incurred evenly throughout the year .
Annual property taxes are $ 14,000 and are paid semi annually in June and October .
A $ 10,000 cash capital purchase will be made in April .
The beginning cash balance in April is expected to be $ 47,000 . The Hale Company has a policy of maintaining a minimum cash balance of $ 45,000 . The company has an arrangement with a local bank for a line of credit that carries a 10 % annual interest rate . If the ending