CASH COOLECTION PATTERN is as follows: 21% of a month's sales are collected by month-end. An additional 48% is collected in the month following, and the remaining 31% is collected in the second month following sale. Thus far bad debts have been negligible. Since OWP's policy is to never stock out of its pen-based input devices (PIDS), and potentially forfeit market share to competitors, the Company maintains fairly high inventory levels. Therefore, desired ending inventories are equal to 76% of the next month's sales in units. Prior to June, OWP sold only the basic model PID-B at a price of $230 per unit. The PID-B costs Out- West Products $155 each from the manufacturer and it pays for purchases as follows: CASH Disbursements PATTERN is as follows: 55% in the month of purchase and the remaining 45% the following month. In June, OWP began carrying a premium model PID-P, which sells for $380 per unit and costs $225 from the manufacturer. The current sales mix is 80 percent PID-B and 20 percent PID-P. However, going forward the Company expects this mix to shift toward the premium model, along with ongoing competitive pricing pressure (as reflected in the Assumptions Sheet). The company's monthly operating expenses (organized by cost behavior) are also provided in the Assumptions Sheet of the excel template. All operating expenses are paid during the month, in cash, with