=+The company expects to sell about 10% ofits merchandise for cash. Ofsales on account, 70% are expected to be collected in full in the month following the sale and the remainder in the following month. Depreciation, insurance, and property tax expense represent $25,000 ofthe estimated monthly manufacturing costs. The annual insurance premium is paid in July, and the annual property taxes are paid in November. Ofthe remainder ofthe manufacturing costs, 80%

are expected to be paid in the month in which they are incurred and the balance in the follow¬

ing month.