3. Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. EXERCISE 7-2 Preparing Sales and Production Budgets [LO2 - CC5,6] The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year: The selling price of the company's product is \\( \\$ 20 \\) per unit. Management expects to collect \65 of sales in the quarter in which the sales are made and \30 in the following quarter; \5 of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is \\( \\$ 80,500 \\). The company expects to start the first quarter with 2,000 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to \15 of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,250 units. Required: 1. Prepare the company's sales budget and schedule of expected cash collections. 2. Prepare the company's production budget for the upcoming fiscal year. EXERCISE 7-3 Preparing Production and Direct Materials Budgets [ \\( \\mathrm{LO} 2 \\) - CC6, 7] The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year