OPERATING EXPENSES {cost per quarter) 12,350 Administrative Expenses: Salaries 17,580 Utilities 2% of sales CAPITAL PROJECT Land Expansion made Q4 $160,000 Effect of the investment: 2022 42,000 2023 5 0,000 2024 85,000 2025 100,000 Additional information: I Total sales are 40% cash, balance on account I Collection experience: 1% of sales on account during the quarter is collection in the same quarter, balance is collected The following quarter. I December 2020 Accounts receivable, end is 45,000 I Purchases of materials composed of 20% cash, balance on account I 40% of current quarters purchases on account is paid during the same quarter, the balance of 60% is paid the following quarter. I Accounts pave ble for purchases for December 2020 is 2,000. I Direct Labor Cost assumed paid during the same quarter incurred I Factoryr Overhead paid as incurred I Operating expenses are assumed to be paid in the same quarter as they.r are incurred. I The estimated cash balance as of January 1, 2021 is 322,500. I Cost of Capital 10% I Salvage value of the proiect is 30,000 at 4* year