In the fourth quarter of 2014, Eurofit Cycling, a bike shop, had the following net income:
Sales .......................................................... $550,000
Less cost of sales ........................................... 250,000
Gross margin ................................................ 300,000
Selling and administration ................................ 70,000
Income before taxes ....................................... 230,000
Income taxes ............................................... 80,500
Net income ................................................. $ 149,500
Purchases in the fourth quarter amounted to $195,000.
Estimated data for Eurofit Cycling for 2015 are as follows:

Taxes are 35 percent of pretax income and are paid in the quarter incurred. Fifty percent of sales are collected in the quarter of sale and 50 percent are collected in the next quarter. Seventy percent of purchases are paid in the quarter of purchase and 30 percent are paid in the next quarter.
Selling and administrative expenses are paid in the quarter incurred except for $7,000 of depreciation included in selling and administrative expense. A capital expenditure for $20,000 is planned for the fourth quarter of 2015.
Required
Prepare a cash budget for each quarter of 2015.

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Quarter 1Quarter 2 Quarter 3 550,000 170,000 85,000 220,000 225,000 71,000 Quarter 4 400,000 $475000 550.000 Sales Cost of sales Purchases Selling and administration 60,000 200,000 67,000 230,000 267,000 73,000 69,000