The city of Charleston had the following sales of water for the selected months of 2017: Month February Sales $70,000 March 45.000 April 60,000 85,000 May June July 70,000 120,000 All sales are on credit. Historically, 40 percent is collected in the month of sale, 20 percent during the first month following the sale, and 40 percent in the second month following the sale. Water purchases by month are as follows: Month February $60,000 March 40,000 April 45,000 May 50,000 52,500 June July 90,000 Water is purchased in the month of sale. All purchases are paid during the month following the purchase. Operating costs are $25,000 and everything is paid in cash except for depreciation, which totals $8,000 a month, The city plans on purchasing some new equipment in May for $25,000 in exchange for a note payable. The April 1 cash balance is expected to be $5,000. The city must maintain a minimum cash balance of $10,500, and money can be borrowed from a local bank in any increment. The city borrows money at the beginning on the first day of the month and repays loans and interest on the last day of the month. The bank charges the city an annual interest rate of 17%