Brant Novelty Sales (BN5) imports novelty items that it sells to retailers. BN5 purchases and sells these novelty items in batches. BN5 pays 545 for each batch of items, which it sells for 51m]. The supplier ships the batches directly to the customer so BN5 incurs no shipping costs. BN5 began operations in October of the current year. BN5 began operations with cash of $10,000. It is now the end of December and BN5 is developing plans for the next six moths. Actual sales for October through December of this year and expected sales for the rst seven months of next year are as follows: Dunbar "mm December Jame Fohru March rll Juno Jul L300 L200 L101] L403 L201] Loon coo L203 1.400 L311! BN5 purchasing strategy is to purchase 40% of next month's requirements in each month with the remaining 50% purchased in the month of sale. BN5 pays 20% of its purchases in the month purchased and 80% in the following month. BN5 makes cash sales, credit card sales, and account sales. Cash sales are 10% of total sales. Credit card sales are 30% of total sales. The credit card oompa ny collects a 2% fee on credit card sales and remits the balance to BN5 in the month following the month ofsale. Account sales, which comprise 51396 of total sales are distributed as follows: It 30% of the account sales are collected in the month following the month of sale I 40% of the account sales are collected in the second month following the month of sale I 27% of the account sales are collected in the third month following the month of sale It 3% of the account sales are never collected. Fixed selling, general, and administrative expenses at BN5 are as follows: lan Februa March April M June $100,000 525,01] 513,13] 555,02!) 550,01] $110,[IOZI