Wilson's retail company is planning a cash budget for the next three months. Estimated sales revenue is as follows:
Month Sales Revenue
- January $300,000
- February 225,000
Month Sales Revenue
- March $200,000
- April 175,000
All sales are on credit; 60 percent is collected during the month of sale and 40 percent is collected during the next month. Cost of goods sold is 80 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $41,000 per month and are paid during the month incurred. The ash balance on February 1 is estimated to be $30,000.
Prepare monthly cash statements for February, March, and April.