horizon financial inc. was organized on february 28. projected selling and administrative expenses for each of the first three months of operations are as follows: march $174,900 april 164,400 may 149,600 depreciation, insurance, and property taxes represent $37,000 of the estimated monthly expenses. the annual insurance premium was paid on february 28, and property taxes for the year will be paid in june. 68% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.