Patrick's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

month sale revenue month sale revenue

January $ 250,000 March $ 400,000

February 350,000 April 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 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.

Prepare monthly cash budgets for February, March, and April.

Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers.

Patrick's Retail Company

Cash Budgets

feburary march and april

February, March, April

Cash balance, beginning answers

Total Cash receipts answers

Cash available answer

Total disbursements Answer

Cash balance, ending Answer

Answer