Esquire Products Inc. expects the following monthly sales: January February $ 34,000 July $ 28,000 25,000 August 32,000 March 18,000 September 35,000 April 20,000 October 40,000 May 14,000 November 48,000 June 12,000 December 30,000 Total sales $336,000 Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each. Esquire uses level production, and average monthly production is equal to annual production divided by 12.