Cash budgeting, comprehensive (LO3). Refer to the data in the previous problem for Peterson Pipes. Peterson expects its first-quarter opening balances in cash, accounts receivable, and accounts payable to be $75,000, $125,000, and $126,500, respectively. The following additional information also is relevant for preparing Petersons cash

budgets:

Peterson expects to earn the same amount of revenues for each of the three months within a quarter. Experience indicates that Peterson collects 60 percent of its sales in the month of sale and 40 percent in the following month.

Peterson expects to make the same amount of materials purchases for each of the three months within a quarter. Peterson pays for 50 percent of its materials purchases in the month of purchase and the remaining 50 percent in the month following purchase.

Each quarters fixed manufacturing overhead includes $15,000 of noncash expenses. The remaining overhead expenses occur uniformly throughout the three months of each quarter and are disbursed immediately in cash.

Fixed selling and administrative expenses occur uniformly throughout the three months of each quarter, and are disbursed immediately in cash.

Required:

Prepare Petersons cash budget for each quarter of the coming year.