Cash Out

Frozen Yogurt Company estimates starting the year with $0 in Accounts Payable. Projected Period Expenses for the first 3 months of the year are as follows:

January $200,000

February $150,000

March $225,000

Of the total period expenses, Depreciation expense each month represents $5,000. Insurance Expense represents another $10,000 each month. The insurance policy is paid in full in January of each year for the entire next year. Of the remaining period expenses, 25% are to be paid in the month the expense is incurred, and the remaining 75% will be paid the following month.

What is the amount of cash outflow Frozen Yogurt should budget for the month of February?