ivanhoe instruments, a rapidly expanding electronic parts distributor, is formulating its plans for $2022.$ Gary King, the firms director of marketing, has completed his $2022$ forecast and is confident that the company will meet or exceed sales estimates. the following sales figures show the growth that is expected and are the basis for planning in the other corporate departments:Ivanhoe Instruments, a rapidly expanding electronic parts distributor, is formulating its plans for $2022.$ Gary King, the firm's director of marketing, has completed his $2022$ forecast and is confident that the company will meet or exceed sales estimates. The following sales

figures show the growth that is expected and are the basis for planning in the other corporate departments:John Smith, assistant controller, is responsible for the cash flow projection, a critical element during a period of rapid expansion. She

will use the following information in preparing her cash analysis:

Ivanhoe has experienced an excellent record in accounts receivable collection and expects this trend to continue. The

company collects $50\%$ of billings in the month after the sale and $50\%$ in the second month after the sale. Uncollectible

accounts are nominal and can be ignored in the analysis.

The purchase of electronic parts is Ivanhoe's largest expenditure; the cost of these items is equal to $60\%$ of sales. Ivanhoe

receives $40\%$ of the parts one month before it sells them and $60\%$ during the month of sale.

Historically, Ivanhoe has cleared $60\%$ of the accounts payable one month after it receives its purchases, and the remaining

$40\%$ two months after.

Hourly wages, including fringe benefits, depend on the sales volume; they are equal to $20\%$ of the current month's sales. The

company pays these wages in the month incurred.

General and administrative expenses are projected to be $$3,437,500$ for $2022.$ The composition of these expenses is given

below. The company incurs all of these expenses uniformly throughout the year, except for property taxes. It pays the