Operating Cash Payments Budget	Jan	Feb	Mar	April Total
Operating cash payments
Product sales revenue	150000	165000	175000	180000
Purchases
Cost of expected sales
Required ending inventory
Beginning inventory
Purchases
Current monthly payments
Subsequent monthly payments
Cash payments for purchases
Expenses
Selling expenses
General and administrative expenses
Expenses
Operating cash payments
Assumptions
Beginning inventory
Required ending inventory
Cost of expected sales
Product sales expected in April
Beginning accounts payable
Pct. of purchases paid in current month
Pct. of purchases paid in subsequent month

PURCHASES COST 60% OF PRODUCT SALES, ENDING INVENTORY EQUAL TO 50% OF THE NEXT MONTHS COST OF SALES , JANUARY BEGINNING INVENTORY $75000 AND $15000 IN ACCOUNTS PAYABLE, 90% OF A MONTHS PURCHASES ARE PAID IN THE CURRENT MONTH WITH THE REMAINING PAID IN THE FOLLOWING MONTH. SELLING EXPENSES JAN. $6000 FEB. $7000 MARCH $8000, ADMINISTRATIVE EXPENSES ARE CONSTANT AT $40000 A MONTH. ALL EXPENSES ARE PAID IN THE MONTH INCURRED.