Alpha-Tech, a rapidly growing distributor of electronic components, is formulating its plans for 20x5 Carol Jones, the firm's marketing director, has completed the following sales forecast. ALPHA-TECH 20x5 Forecasted Sales (in thousands) Month January February March April Ma June July August September October November December Sales S 7,000 8,000 7,000 9, 500 10,500 12,000 13,000 13,000 14,000 14,000 13,000 15,000 Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. The following information will be used in preparing the cash flow projection. Alpha-Tech's excellent record in accounts receivable collection is expected to continue. Sixty percent of billings are collected the month after the sale, and the remaining 40 percent two months after The purchase of electronic components is Alpha-Tech's largest expenditure, and each month's cost of goods sold is estimated to be 30 percent of sales. Seventy percent of the parts are received by Alpha-Tech one month prior to sale, and 30 percent are received during the month of sale Historically, 70 percent of accounts payable has been paid one month after receipt of the purchased components, and the remaining 30 percent has been paid two months after receipt. Hourly wages and fringe benefits, estimated to be 30 percent of the current month's sales, are paid in the month incurred General and administrative expenses are projected to be $16,170,000 for the year The breakdown of these expenses is presented in the following schedule. All cash expenditures are paid uniformly throughout the year, except the property taxes which are paid in four equal installments at the end of each quarter 20x5 Forecasted General and Administrative Costs (in thousands) Salaries and fringe benefits Promotion Property taxes 3,200 4, 300 1,480