Prepare a cash budget for Elmwood Manufacturing Company for the first three months of 2014 based on the following information:

The company has found that approximately 40 percent of sales are collected during the month the sale is made and the remaining 60 percent are collected during the month following the sale. Material purchases are 30 percent of next month's estimated sales, and payments lag these purchases by one month. Labor costs are 35 percent of next month's sales and are paid during the month incurred. Factory overhead and selling and administrative expenses are paid during the month incurred. In addition, a payment for new equipment of $1.5 million is due in February. Also, a tax payment of $1.6 million and a dividend payment of $650,000 are due in March.
The company's projected cash balance at the beginning of January is $1.5 million. Furthermore, Elmwood desires to maintain a $750,000 cash balance at the end of each month.

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Month December 2013 January 2014 Fabruary 2014 March 2014 April 2014 Estimated Sales $4,600,000 6,400,000 11,200,000 8,400,000 7,000,000 Estimated Factory Overhead $640,000 650,000 670,000 670,000 680,000 Estimated Selling and Administrative Expenses $1 250,000 1275,000 ,285,000 1310,000 1300,000