Target Monthly Cash Balance $25,000 Sales Collection: Upfront with 1% discount 37% 1 Month with 0.5% discount 28% 2 Months with no discount 34% Uncollectable 1% Cost of Materials 44% of current month's sales Material costs are paid after one month with no discount Other variable costs 26% of current month's sales Other variable costs include Labor, S&A, taxes, and other expenses and are paid during the month they are incurred Fixed costs 12% of current month's sales Fixed costs are paid during the month they are incurred November 2020 Sales $185,000 December 2020 Sales $195,000 Initial cash balance left Dec 31, 2020 $28,400 Jan-21 Feb-21 Mar-21 Projected Gross Sales $200,000 $230,000 $220,000