Healthy Company had the following sales each quarter of the year just ended.

	Q1	Q2	Q3	Q4
Last years' sales	$ 655,000	$ 695,000	$ 715,000	$ 700,000

You are projecting that sales will be 0% percent higher in each quarter next year. The average collection period of the company is 45 days and an account receivable balance of $550,000. It is likely that 10% of the account receivables balance will never be collected. Company purchases from suppliers amount to 50 percent of the following quarters predicted sales. The average account payable is 30 days. Wages, taxes and other costs totaling 20 percent of sales, interest payments amounting to $178,000 per quarter. The company plans to purchase new machinery of $ 300,000 in the third quarter. You are told that Healthy Company has a policy of maintaining a minimum cash balance of $95,000 to meet contingencies. Healthy Company arranges to borrow any needed funds on a short-term basis with interest rate 1.5 percent per quarter. The initial cash balance is $115,000