Lackawanna Products’ management wishes to purchase goods in one month for sale in the next. O January 31, the company has 8,000 digital musipc layiens rtocsk, although sales for the next neih

(February) are estimated to total 88, 600 players. Sales for March are expected to equal7 ,00 0000 players, and April ssaele s are expected to total 7,400 players.

~Ta pe players are purchased at a wholesale price of $290. The supplier has a financing arrangement by which Lackawanna pays 60 percent of the purchase price in the month when the players are delivered and 40 percent in the following month. Lackawanna purchased 10,00 00 players in January.

Required f2é boo 4 Jeco = 7be°

a. EstimateA e ci Oeu nits) for February and March.

b. Estimate the cash required in February and March to pay for the company’s first-quarter purchases