Moorcroft Company's budgeted sales and direct materials purchases are as follows:

		Budgeted Sales		Budgeted D.M. Purchases
April		$295,000		$44,000
May		294,000		52,000
June		355,000		61,000

Moorcroft's sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcroft's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase.