2. Mynor Corporation manufactures and sells a seasonal product that has peak sales in the third quarter. The following information concerns operations for Year 2:

(i) The companys single product sells for $8 per unit. Budgeted sales in units for the next four quarters are as follows (all sales are on credit):

Particulars YEAR TWO First Quarter Second Quarter Third Quarter Fourth Quarter

Budgeted unit sales 40,000 60,000 100,000 50,000

(ii) Sales are collected in the following pattern: 75% in the quarter the sales are made, and the remaining 25% in the following quarter. On January 1, Year 2, the companys balance sheet showed $65,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored.

REQUIREMENTS:

(a) Prepare a sales budget for Year Two.

(b) Prepare a schedule of expected cash collections for Year Two