Prepare a cash budget for Atlas Products Inc for the first quarter of 2008 based

Prepare a cash budget for Atlas Products Inc for the first quarter of 2008 based on the following information. The budgeting section of the corporate finance department of Atlas Products has received the following sales estimates from the marketing department: Total Sales Credit Sales December 2007 825000 770000 January 2008 730000 690000 February 2008 840000 780000 March 2008 920000 855000 The company has found that on average about 25 percent of its credit sales are collected during the month when the sale is made and the remaining 75 percent of credit sales are collected during the month following the sale. As a result the company uses these figures for budgeting. The company estimates its purchases at 60 percent of next month s sales and payments for those purchases are budgeted to lag the purchases by one month. Various disbursements have been estimated as follows: Jan FEB MAR Wages and salaries 250000 290000 290000 Rent &n bsp; 27000 27000 27000 Other expenses 10000 12000 14000 In addition a tax payment of $105000 is due on January 15 and $40000 in dividends will be declared in January and paid in March. Also the company has ordered a $75000 piece of equipment. Delivery is scheduled for early January and payment will be due in February. The company s projected cash balance at the beginning of January is $100000 and the company desires to maintain a balance of $100000 at the end of each month.