The Blossom Company is in a seasonal business and prepares quarterly budgets. Its fiscal year runs from January 1 through December 31. Production occurs only in the first quarter (January to March), but sales take place throughout the year. The sales forecast for the coming year shows the following: First quarter Second quarter $489,000 Third quarter $489,000 297,000 Fourth quarter 489,000 There are no cash sales, and the beginning balance of receivables is expected to be collected in the first quarter. Subsequent collections are two-thirds in the quarter when sales take place and one-third in the following quarter. The company makes materials purchases valued at $401,000 in the first quarter, but makes no purchases in the last three quarters. It makes payment when it purchases the materials.