The following is income statement information of a restaurant for the first two months of operation. Of the sales revenue, 80 percent is collected in cash with the remainder collected in the following month. Of cost of sales, 75 percent is paid in the current month and the remainder is paid in the next month. Wages and operating expenses are paid in the month incurred. The January beginning cash balance was $3,898. Using a cash budget format, calculate the ending cash balance for the month of February.

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Sales revenue Cost of sales Gross margin January $36,600 ( 13,908) $22,692 February $38,300 (14,556) $23,744