Wildhorse Instruments, a rapidly expanding electronic parts distributor, is formulating its plans for $2022.$ Daniel Jackson, the firm's

director of marketing, has completed his $2022$ forecast and is confident that the company will meet or exceed sales estimates. The

following sales figures show the growth that is expected and are the basis for planning in the other corporate departments:

Mark White, assistant controller, is responsible for the cash flow projection, a critical element during a period of rapid expansion. She

will use the following information in preparing her cash analysis:

Wildhorse has experienced an excellent record in accounts receivable collection and expects this trend to continue. The

company collects $50\%$ of billings in the month after the sale and $50\%$ in the second month after the sale. Uncollectible

accounts are nominal and can be ignored in the analysis.

The purchase of electronic parts is Wildhorse's largest expenditure; the cost of these items is equal to $60\%$ of sales. Wildhorse

receives $40\%$ of the parts one month before it sells them and $60\%$ during the month of sale.

Historically, Wildhorse has cleared $60\%$ of the accounts payable one month after it receives its purchases, and the remaining

$40\%$ two months after.