M22-20. Cash Budget Patrick's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows: Month January. February. Sales Revenue $250,000 350,000 Month March April Sales Revenue Required Prepare monthly cash budgets for February, March, and April. $400,000 375,000 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.

20. Cash Budget 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 following 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. \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{6}{|c|}{\begin{tabular}{l} Patrick's Retail Company \\ Cash Budgets \\ February, March, and April \end{tabular}} \\ \hline & & February & & March & & April \\ \hline Cash balance, beginning & $. & 55,000 & & 205,000 & x$ & 222,500 \\ \hline Total Cash receipts & & 262,500 & xA & 387,500 & r & 381,250 \\ \hline Cash available & & 175,000 & x & 245,000 & x & 280,000x \\ \hline Total disbursements & 1 & 125,000 & x & 125,000 & x & 125,000 \\ \hline Cash balance, ending & $ & 205,000 & x & 222,500 & $ & 198,750 \\ \hline \end{tabular}