Based on 2017 sales, Rosario Resources Management has forecasted the following monthly growth in sales and monthly cash collection measures for 2018:

a.  12-month cash flow budget in Excel using the following assumption:

• Annual 2017 sales of $4,500,000 per month with forecasted monthly growth of 2%
• 35% of each month's sales for cash; 30% collected the following month; 20% collected 2 months later; 10% collected 3 months later; and 5% never collected
• Initial cash balance of $300,000

Assuming an initial cash balance of $300,000, management has concluded that they will achieve an ending cash balance of $41,000,000.

 Required:  short summary to evaluate management's decision