Marios sales for February, March, and April were as follows: $110,000, $140,000 and $160,000. (Mario began his business in February)

70% of sales are collected in the month of sale, with the remaining 30% collected in the following month.

Marios expenses include:

February March April

Operating expense $52,000 $30,000 $25,000

Cost of goods sold $20,000 24,000 22,000

Operating expenses and cost of goods sold are paid in the month incurred.

Required:

(A) Construct a cash budget for Mario and determine how much cash Mario will have at the end of: February, March, and April.

(B) Will Mario have enough money to cover the $55,000 payoff of his mortgage of in April?

You may use this template as a guide.

	A	B	C	D
1
2
3
4		February	March	April
5
6
7
8
9
10
11
12
13	Total available cash by month
14