Cash flow

Alco Inc. deals in wooden charis and had following sales revenue: Month Sales Revenue Jan 132,000 Feb 168,000 Mar 149,000 Apr 155,000 161,000 177,000 I The company charges 20% margin on the purchase price of the goods. The balance of inventory as at January 01 was $78,000 and at June 30 was $56,500. The purchases made were paid 50% in the month of purchases, 25% in the next month, and 25% in the following month May Jun