Aztec Company sells its product for $170 per unit. Its actual and projected sales follow.

	Units	Dollars
April (actual)	4,000	$680,000
May (actual)	4,000	680,000
June (budgeted)	6,000	1,020,000
July (budgeted)	6,500	1,105,000
August (budgeted)	4,400	748,000

All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 29% in the second month after the sale, and 1% proves to be uncollectible. The products purchase price is $110 per unit. All purchases are payable within 14 days. Thus, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 23% of the next months unit sales plus a safety stock of 65 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,548,000 and are paid evenly throughout the year in cash. The companys minimum cash balance at month-end is $110,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $110,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 14% interest rate. On May 31, the loan balance is $47,000, and the companys cash balance is $110,000.