PROBLEM 10-10. Cash Budget [LO 2] In the fourth quarter of 2014,Casey Wholesalers had the following net income:

Sales $650,000

Less cost of sales 300,000

Gross margin 350,000

Selling and administration 250,000

Income before taxes 100,000

Income taxes 35,000

Net income $ 65,000

Purchases in the fourth quarter amounted to $375,000.

Estimated data for Casey Wholesalers,Inc.for 2015 are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales $725,000 $805,000 $875,000 $968,000

Cost of sales 350,000 420,000 500,000 580,000

Purchases 410,000 450,000 525,000 600,000

Selling and administration 250,000 250,000 250,000 250,000

Taxes are 35 percent of pretax income and are paid in the quarter incurred.Sixty percent of sales are collected in the quarter of sale and 40 percent are collected in the next quarter.Eighty percent of purchases are paid in the quarter of purchase and 20 percent are paid in the next quarter.Selling and administrative expenses are paid in the quarter incurred except for $10,000 of depreciation included in selling and administrative expense.A capital expenditure for $75,000 is planned for the fourth quarter of 2015.

Required

Prepare a cash budget for each quarter of 2015.