4. Prepare a cash budget for Atlas Products, Inc., for the first quarter of 2014, 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 2013 $825,000 $770,000 January 2014 730,000 690,000 February 2014 840,000 780,000 March 2014 920,000 855,000 The company has found that, on average, about 25 percent of its credit sales are col- lected 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 com- pany uses these figures for budgeting. The company estimates its purchases at 60 percent of next months sales, and payments for those purchases are budgeted to lag the purchases by one month. Various disbursements have been estimated as follows: January February March Wages and salaries $250,000 $290,000 $290,000 Rent 27,000 27,000 27,000 Other expenses 10,000 12,000 14,000 In addition, a tax payment of $105,000 is due on January 15, and $40,000 in divi- dends will be declared in January and paid in March. Also, the company has ordered a$75,000pieceofequipment.DeliveryisscheduledforearlyJanuary,andpayment will be due in February. The companys projectedcashbalanceatthebeginningofJanuaryis$100,000, and the company desires to maintain a balance of $100,000 at the end of each month.