In the fourth quarter of 2011, Casey Wholesalers had the following net income:

Sales ..................................$600,000

Less cost of sales ............................. 300,000

Gross margin ................................... 300,000

Selling and administration ........... 240,000

Income before taxes ........................ 60,000

Income taxes .................................. 21,000

Net income .................................... $ 39,000

Purchases in the fourth quarter amounted to $350,000.

Estimated data for Casey Wholesalers, Inc. for 2012 are as follows:

Taxes are 35 percent of pretax income. 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 $15,000 of depreciation included in selling and administrative expense. A capital expenditure for $60,000 is planned for the fourth quarter of 2012.

Required
Prepare a cash budget for each quarter of2012.

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Sales Cost of sales Purchases 350,000 400,000 Selling and administration 250,000 250,000 250,000 Quarter1 Quarter 2 Quarter 3 Quarter 4 $700,000 800,000 $900,000 $1,000,000 500,000 550,000 250,000 400,000 450,000 450,000 500,000