Problem: Bulltuff Stock Trailers, Inc 1. In the last four months Hal has checks written to supplier that were refused by the bank because of nonsufficient funds. His main supplier Alcoa Aluminum Supply Co, has cut off credit. He can't understand why his checks keep bouncing. Cash sales are 10% of total sales Credit card sales are 10 percent of total sales and are collected the week following the sale. The credit card provider deducts 2.5 percent of the gross amount of each credit card sale. . Sales on account are 80 percent of all sales. All credit sales are to dealers. Terms for dealers are "30", "30", "30." Payments are due by the 10th of the month. Direct materials, primarily aluminum, are 60% of the cost of building a trailer. Hal must pay cash on delivery Total cost of direct labor is 15% of the cost of building a trailer. Variable costs combined (materials and labor) are 50% of gross sales. All other costs combined are treated as fixed costs, and total $1 million per year. Bulltuff leases his building and equipment and has no depreciation. . Projected Sales for the year $5,000.00 Sales for the first four months of the year have been: . . Jan- $208,000 Feb $261,000 Mar-$293,000 April -$328,000 1. What is causing Hal's cash flow problems? 2 According to the case, Bulltuff Stock Trailers has sales of $208,000 in January a. How much cash did the company collect from those sales in January: How much cash did the company collect from the January sales in February:- b. (Hint: See items #1,2,3) 3Assuming that Bulltuff has a Gross Margin of 75%, determine how much and when the npany had to pay for the $208,000 of sales in January