Vaughn Manufacturing estimates its sales at 400000 units in the first quarter and that sales will increase by 27000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale.