In the fourth quarter of 2017, Eurofit Cycling, a bike shop, had the following net income:
Sales ..............................................$550,000
Less cost of sales .................................250,000
Gross margin .....................................300,000
Selling and administration .......................70,000
Income before taxes .............................230,000
Income taxes .......................................80,500
Net income ......................................$149,500
Purchases in the fourth quarter amounted to $195,000.
Estimated data for Eurofit Cycling for 2018 are as follows:

Taxes are 35 percent of pretax income and are paid in the quarter incurred. Fifty percent of sales are collected in the quarter of sale and 50 percent are collected in the next quarter. Seventy percent of purchases are paid in the quarter of purchase and 30 percent are paid in the next quarter. Selling and administrative expenses are paid in the quarter incurred except for $7,000 of depreciation included in selling and administrative expense. A capital expenditure for $20,000 is planned for the fourth quarter of 2018.
Required
Prepare a cash budget for each quarter of 2018.

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales Cost of sales $400,000 $600,000 $475,000 $550,000 170,000 200,000 69,000 267,000 225,000 Purchases Selling and administration 160,000 71,000 73,000