Patrick’s Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 80 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total \($52,000\) per month and are paid during the month incurred. The cash balance on February | is estimated to be $35,000.
Required
Prepare monthly cash budgets for February, March, and April.

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Month Sales Revenue Month January. February $350,000 March 300,000 April Sales Revenue $250,000 200,000