EARRINGS UNLIMITED Minimum ending cash balance Selling price Recent and forecast sales n units) January (actual) February (actual) March (actual May June July August September Desired ending inventories (percentage of next month's sales) Cost of earrings Purchases paid as follows: In month of purchase In following month Collection on sales: Sales collected current month Sales collected following month Sales collected 2nd month following Variable monthly expenses: Sales commissions of sales) $50,000 $10 20,000 26,000 40,000 65,000 100,000 50,000 30,000 28,000 25,000 40% 50% 50% 20% 70% 10%