Bloom Corp. produces one product that sells at $20 per unit and sells best on Valentine's Day and Mothers Day. As a result peak sales occur in February and May of each year. Budgeted sales in units for the first six months of the coming year are:

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Bloom Corp. produces one product that sells at \$20 per unit and sells best on Valentine's Day and Mother's Day. As a result peak sales occur in February and May of each year. Budgeted sales in units for the first six months of the coming year are: 25% of all sales are cash sales and the rest are on account. Past experience shows that the company collects 25% of a month's credit sales in the month of sale. Another 65% of credit sales is collected in the month following sale, and the remaining 10% of credit sales is collected in the second month following sale. Bad debts are negligible and can be ignored. To ensure that sales volumes can be met, the company requires that ending inventory for a particular month reflect 15% of next month's sales. Assume June 30 closing inventory will be 1,500 units. Required: a) Prepare a sales budget in dollars and a schedule of cash collections from sales, by month and in total, for the second quarter (10 marks). b) If the company prepares a budgeted balance sheet as of June 30, compute the accounts receivable as of that date (5 marks). c) Prepare a production budget by month and in total for the second quarter