Ellis Electronics Company's actual sales and purchases for April and May are shown here, along with forecasted sales and purchases for June through September. April (actual) May (actual) June (forecast) July (forecast) August (forecast) September (forecast) Sales $390,000 Purchases. $137,000 370,000 127,000 345,000 127,000 345,000 187,000 360,000 207,000 400,000 177,000 The company makes 40 percent of its sales for cash and 60 percent on credit. Of the credit sales, 20 percent are collected in the month after the sale and 80 percent are collected two months after. Ellis pays for 40 percent of its purchases in the month after purchase and 60 percent two months after. Labour expense equals 20 percent of the current month's sales. Overhead expense equals $12.700 per month. Interest payments of $33,500 are due in June and September. A cash dividend of $53,500 is scheduled to be paid in June. Tax payments of $25,700 are due in June and September. There is a scheduled capital outlay of $370,000 in September. Ellis Electronics' ending cash balance in May is $23,500. The minimum desired cash balance is $18,500.