Estimated Monthly Sales Type of Monthly Sales $1,200,000 Cash Sales 20% January February 1,300,000 Credit Sales 80% March 1,400,000 April 1,250,000 May 1,440,000 June 1,600,000 Collection pattern for credit sales Month of sales 30% One month following sale 40% Second month following sale 25% Cummings cost of goods sold average 40% of the sales value. Cummings objective is to maintain a target Inventory equal to 30% of the next month's sales. Purchases of merchandise for resale are paid for in the month following the sale. The variable operating expenses (other than Cost of goods sold) for Cummings are 10% of sales and are paid for in the month following the sale. The annual fixed operating expenses are presented below. All of these are incurred uniformly throughout the year and paid monthly except for insurance and property taxes. Insurance is paid quarterly in January, April, July and October. Property taxes are paid twice a year in April and October: Annual Fixed Operating costs Advertising $1,440,000 Depreciation 840,000 Insurance 360,000 Property taxes 480,000 Salaries 2,160,000 Determine the amount for cost of goods sold that will appear on Cummings Corporation's pro form income statement for the month of February