The results of operations for the Dynatech Manufacturing Company for the fourth quarter of 2020 were as follows:

Sales					$	440,000
Less variable cost of sales						264,000
Contribution margin						176,000
Less fixed production costs		$	96,000
Less fixed selling and administrative expenses			44,000			140,000
Income before taxes						36,000
Less taxes on income						14,400
Net income					$	21,600

Note: Dynatech Manufacturing uses the variable costing method. Thus, only variable production costs are included in inventory and cost of goods sold. Fixed production costs are charged to expense in the period incurred. The companys balance sheet as of the end of the fourth quarter of 2020 was as follows:

Assets:
	Cash		$	128,000
	Accounts receivable			176,000
	Inventory			308,000
	Total current assets			612,000
	Property, plant, and equipment			352,000
	Less accumulated depreciation			88,000
Total assets			$	876,000
	Liabilities and owners equity:
	Accounts payable		$	52,800
	Common stock			432,000
	Retained earnings			391,200
	Total liabilities and owners equity		$	876,000

Additional information:

1.		Sales and variable costs of sales are expected to increase by 12 percent in the next quarter.
2.		All sales are on credit with 60 percent collected in the quarter of sale and 40 percent collected in the following quarter.
3.		Variable cost of sales consists of 40 percent materials, 40 percent direct labor, and 20 percent variable overhead. Materials are purchased on credit. Fifty percent are paid for in the quarter of purchase, and the remaining amount is paid for in the quarter after purchase. The inventory balance is not expected to change. Also, direct labor and variable overhead costs are paid in the quarter the expenses are incurred.
4.		Fixed production costs (other than $7,000 of depreciation expense) are expected to increase by three percent. Fixed production costs requiring payment are paid in the quarter they are incurred.
5.		Fixed selling and administrative costs (other than $5,000 of depreciation expense) are expected to increase by two percent. Fixed selling and administrative costs requiring payment are paid in the quarter they are incurred.
6.		The tax rate is expected to be 20 percent. All taxes are paid in the quarter they are incurred.
7.		No purchases of property, plant, or equipment are expected in the first quarter of 2021. THIS SHOULD HELP YOU COMPLETE THE PROBLEM ^^^^ THANK YOU

Prepare a cash budget for the first quarter of 2021. Dynatech Manufacturing Company Cash Budget For the Quarter Ended March 31, 2021 Cash receipts : Cash collected from sales Cash payments V: Payment for labor $ 118272 i Payment for fixed production costs Payment for fixed selling and admistration expense Payment of income taxes 10734 i Payment for variable overhead 59136 i Payment of material Total cash payments Excess/(deficiency) of receipts over disbursements $ Add : Beginning cash balance 12801 Ending cash balance $ Dynatech Manufacturing Company Budgeted Income Statement For the Quarter Ended March 31, 2021 Sales $ 492800 Less : Variable cost of sales 295680 Contribution margin 197120 Less Fixed production costs 98670 i Fixed selling and administrative expenses 44780 i 143450 i Income befc taxes 53670 Less Taxes on income 10734 Net income/(loss) $ 42936