Prepare a cash budget for Atlas Products, Inc., for the first quarter of 2006, 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:

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:

In addition, a tax payment of $105,000 is due on January 15, and $40,000 in dividends will be declared in January and paid in March. Also, the company has ordered a $75,000 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 $100,000, and the company desires to maintain a balance of $100,000 at the end of eachmonth.

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December 2005 January 2006 February 2006 March 2006 Total Sales $825,000 730,000 840,000 920,000 Credit Sales $770,000 690,000 780,000 855,000 January February Mach Wages and salaries $250.000 $290.000 $290.000 27.000 27.000 0.000 Rent 27.000 Other expenses 12000 4.000