Mr Grob started trading in 20X3, selling one product, wheelbarrows, on credit to small retail outlets. The following budgeted information for 20X4 has been gathered:

???????????????????????????????????????????? January 20X4????????????????????? ?February 20X4????????????????????????? March 20X4

Credit sales????????????????????????????? $12,000???????????????????????????????$15,000?????????????????????????????????? ?$21,000

Receivables have recently been settling their debts 50% in the month following sale； and 50% two months after sale. A prompt payment discount of 3% is offered to those receivables paying within one month.

The gross profit margin is expected to be 25%. Due to an anticipated continued increase in sales, Mr Grob intends to increase inventory levels in March 20X4 by $2,000, and it is intended that the payables balance is increased by $3,000 to ease cash flow in the same month.