A small business has created the following cash budget for the upcoming six months:

Total Monthly Collections $$50,000$

Total Monthly Payments $$45,000$

Target Cash Balance $$5,000$

The company plans to purchase $$10,000$ of raw materials in month four.

What should a financial officer recommend regarding procurement plans if sales drop to $$42,000$ in month three only?

Options

$1.$ Pre$-$order the purchase in month two.

$2.$ Delay the purchase until month six.

$3.$ Delay the purchase until month five.

$4.$ Purchase as scheduled during month four.