WORKING CAPITAL MANAGEMENT

You have recently been hired to work in your company's newly established treasury department. The company is a small company that produces cardboard boxes in a variety of sizes for diff$$rent purchases. The owner of the company, works primarily in the sales and production areas of the company. Currently, the company puts all receivables in one shoe box and all payables in another. Because of the disorganized system, the finance area needs work and that's what you have been brought in to do$.$

The company currently has a cash balance of $$305,000$ and it plans to purchase new box$-$folding machinery in the fourth quarter at a cost of $$525,000.$ The machinery will be purchased with cash because of a discount offered. The company's policy is to maintain a minimum cash balance of #$125,000.$ All sales and purchases are made on credit.

The owner has projected the following gross sales for each of the next four quarters.

$\backslash$table$[[,$Q$1,$Q$2,$Q$3,$Q$4],[$Gross sales,$$1,310,000,$$$1,390,000,$$$1,440,000,$$$1,530,000$