Prepare a cash budget for Atlas Products, Inc for the first quarter of 2016 based on 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, and 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. As a result, the company uses these figures for budgeting and various disbursements have
been estimated as follows

Sales January February March

December 2015 $800,000 Wages&salaries $290,000 $290,000 $290,000

January 2016 760,000 Rent 50,000 50,000 50,000
February 2016 840,000 Other expenses 60,000 62,000 60,000
March 2016 920,000

April 2016 900.000

In addition, a tax payment of 120,000 is due on January 2016, and $40,000 in dividends will be declared in January and
paid in March. Also, the company has ordered a $80,000 piece of equipment. Delivery is scheduled for early January, and
payment will be due in February.
The companys projected cash balance at the beginning of January is $100,000, and the company desires to maintain a
balance of $50,000 at the end of each month.
 Prepare a cash budget for Atlas Products, Inc for the first quarter of 2016 based on 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, and 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. As a result, the company uses these figures for budgeting and various disbursements have
been estimated as follows

Sales January February March

December 2015 $800,000 Wages&salaries $290,000 $290,000 $290,000

January 2016 760,000 Rent 50,000 50,000 50,000
February 2016 840,000 Other expenses 60,000 62,000 60,000
March 2016 920,000

April 2016 900.000

In addition, a tax payment of 120,000 is due on January 2016, and $40,000 in dividends will be declared in January and
paid in March. Also, the company has ordered a $80,000 piece of equipment. Delivery is scheduled for early January, and
payment will be due in February.
The companys projected cash balance at the beginning of January is $100,000, and the company desires to maintain a
balance of $50,000 at the end of each month.