Purchases of raw materials to produce malt are made in the month prior to the sale and amount to 60 percent of sales in the subsequent month. Payments for these purchases occur in the month after the purchase. Labor costs, including overtime, are expected to be $150,000 in January, $200,000 in February, and

$160,000 in March. Selling, administrative, taxes, and other cash expenses are expected to be $100,000 per month for January through March. Actual sales in November and December and projected sales for January through April are as follows (in thousands):

November $500 January $ 600 March $650 December 600 February 1,000 April 750 On the basis of this information: