Cash Budget $($PLEASE SHOW WORK$)$

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; $75\%$ is collected during the month of sale, and $25\%$ is collected during the next

month. Cost of goods sold is $70\%$ of sales. Payments for merchandise sold are made in the month fol$-$

lowing the month of sale. Operating expenses total $$125,000$ per month and are paid during the month

incurred. The cash balance on February $1$ is estimated to be $$55,000.$

Required

Prepare monthly cash budgets for February, March, and April.