Arendt Company sells homemade cookies locally for $2.50 per box. The companys management has prepared the following first quarter sales forecast: January 1,500 February 1,200 March 1,600 For scheduling purposes, the company tries to maintain 10% of the next months forecasted sales in its inventory. Januarys inventory was in compliance with this policy. Management reports that Arendts typical collection history is as follows: 55% of sales collected in the month of sale 35% of sales collected in the month following sale 8% of sales collected in the second month following sale 2% of sales uncollectible Required: 1. Prepare a sales budget for the first quarter. 2. Prepare a production budget for the first quarter. Beginning inventory in January is 150 boxes; April sales are expected to total 1,100 units. 3. Determine the amount of cash to be collected in March.