Everywhere Sports is a retail store supplying sporting equipment

to community sports clubs. Information about the store's

operations is as follows:

November sales amounted to $400 000. Sales are budgeted at $440 000 for December and $400 000 for

January. Receipts are expected to be 60 per cent in the month of sale and 38

per cent in the month following the sale. Two per cent of sales receipts

are expected to be uncollectable. The store's gross margin is 25 per cent of its sales revenue. A total of 80 per cent of the merchandise for resale is purchased in the

month prior to the month of sale, and 20 per cent is purchased in the