Brooke Company's management team is preparing a cash budget for the coming quarter. The following
budgeted information is under review.
January February March
Revenue $700,000 $800,000 $500,000
Inventory purchases 350,000 425,000 225,000
Other expenses 150,000 175,000 175,000
The company expects to collect 40% of its monthly sales in the month of sale and 60% in the following month.
50% of inventory purchases are paid in the month of purchase and 50% in the following month. Payments for all
other expenses are made in the month incurred. Brooke forecasts the following account balances at the
beginning of the quarter.
Cash $200,000
Accounts receivable 300,000
Accounts Payable (inventory) 400,000
Given the above information, the projected ending cash balance for February