• Kamee Company has accumulated operating data in order to prepare an annual profit plan. Details regarding Kamee’s sales for the first 6 months of the coming year are as follows: Estimated Monthly Sales Type of Monthly Sale January P600,000 Cash Sales 20% February 650,000 Credit Sales 80% March 700,000 April 625,000 Collection Patterns for Credit Sales May 720,000 Month of sale 30% June 800,000 One month following sale 40% Second month following sale 25% Kamee’s cost of goods sold averages 40% of the sales value. Kamee’s objective is to maintain target inventory equal to 30% of the next month’s sales. Purchases of merchandise for resale are paid for in the month of following sale. The variable expenses (other than cost of goods sold) for Kamee are 10% of sales and are paid for in the month following sale. The annual fixed operating expenses are presented below. All of those 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 are: Advertising - P720,000, Depreciation - P420,000; Insurance - P180,000