The following information is budgeted for Mccracken Plumbing Supply Company for next quarter:

All sales at McCracken are on credit. Forty percent are collected in the month of sale, 55% in the month following the sale, and the remaining 5% are uncollectible. McCracken's cost of goods sold is 60% of sales. McCracken's policy is to maintain an inventory at the end of the month equal to 20% of next month's sales. Merchandise purchases are paid in full at the end of the month following the month of purchase. The selling and administrative expenses above include $8, 000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid at the end of the month. McCracken expects to have $12, 000 of cash on hand at the beginning of May. McCracken wants to maintain a minimum cash balance of $60, 000 at the end of the month. Any amount below this can be borrowed from a local bank as needed in increments of $1, 000. All borrowings are made at month end