The City of Charleston had the following sales of water for the selected months of 2018:

• February $50,000
• March $45,000
• April $60,000
• May $42,500
• June $70,000
• July $120,000

All sales are on credit. Historically 50% is collected in the month of the sale, 35% in the month following the sale, and 15% in the month following that.

Cost of water averages 75% of sales. Water is purchased in the month of the sale. All purchases are paid in the month following the purchase. Other operating costs of $10,000 are incurred and paid each month.

The April 1st cash balance is expected to be $5,000.