David Brown, assistant controller, is responsible for the cash flow projection, a critical element during a period of rapid expansion. She will use the following information in preparing her cash analysis:

Historically, Metlock has cleared $60\%$ of the accounts payable one month after it receives its purchases, and the remaining $40\%$ two months after.

Hourly wages, including fringe benefits, depend on the sales volume; they are equal to $20\%$ of the current month's sales. The company pays these wages in the month incurred.

Metlock has a corporate policy of maintaining an end$-$of$-$month cash balance of $$208,000.$ It invests or borrows cash monthly, as necessary, to maintain this balance.

Metlock uses a calendar$-$year reporting period.