Jake Company reports the following:
July August September
Sales $ 23,000 $ 31,000 $ 35,000
Purchases 13,110 17,670 23,000
Payments for purchases are made in the month after purchase. Selling expenses are 17% of sales, administrative expenses are 8% of sales, and both are paid in the month of sale. Rent expense of $2,800 is paid monthly. Depreciation expense is $1,300 per month.