The Frontline Corporation's projected sales for the first 8months of 2019 are shown in the table below.

Jan	$        190,000	May	$    300,000
Feb	120,000	Jun	270,000
Mar	135,000	Jul	225,000
Apr	240,000	Aug	150,000

Of Frontline's sales, 10% is for cash, 60% is collected in themonth following the sales, and 30% is collected in the second monthfollowing sales. November and December 2018 sales were $220,000 and$175,000, respectively. Frontline purchases its raw materials 2months in advance of its sales. The purchases are equal to 60% ofthe final sales price of Frontline's products. The supplier is paidone month after it makes a delivery. For example, purchases forApril sales are made in February and payment is made in March. Inaddition, Frontline pays $10,000 per month for rent and $20,000each month for other expenditures. Tax prepayments of $22,500 aremade every three months beginning in March. The compnay's cashbalance on December 31, 2018 was $22,000. This is the minimumbalance the company wants to maintain. Any borrowing that is neededto maintain this minimum is paid off in the subsequent month ifthere is sufficient cash. Interest on short-term loans (12% annualinterest) is paid monthly. Borrowing to meet estimated monthly cashneeds taks place at the beginning of the month. Thus, if in themonth of April the firm expects to have a need for an additional$60,500, these funds would be borrowed at the beginning of Aprilwith interest of $605 (12% x 1/12 x $60,500) owed for April andpaid at the beginning of May.