Prepare a cash budget for Atlas Products, Inc. for the first quarter of 2011 based on the following information. (20 points) Total Sales Credit Sales December 2010 $825,000 $770,000 January 2011 730,000 690,000 February 2011 840,000 780,000 March 2011 920,000 855,000 The company found that on average, about 25% of its credit sales are collected during the month when the sale is made, and the remaining 75% of the credit sales are collected during the month following the sale. The company estimates its purchases at 60% of the next months sales and payments for those purchases are budgeted to lag the purchases by 1 month. Other 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 in January, and a $40,000 dividend will be declared in January and paid in March. Also, the company has ordered a $75,000 piece of equipment. Delivery is scheduled for January and payment will be made in February. The companys projected cash balance at the end of December is $100,000 and they desire to maintain a balance of $100,000 at the end of each month.