Month	Sales	Purchases	Selling and Administrative expenses
March	$ 92,000	$ 62,000	$ 23,000
April	116,000	88,000	28,000
May	131,000	112,000	38,000
June	130,000	74,000	34,300

(75 percent) of the sales are in cash. Of the credit sales, 40 percent are collected in the month of sale and 60 percent are collected in the following month.

For the purchases the company made, 55 percent is paid in the month of purchase and 45 percent is paid the following month. The selling and administrative expenses are paid in the current month.