David Inc. is presently preparing their budget for the 1st quarter. The marketing department has projected sales, in units, for the coming 4 months:

January	3,000
February	2,500
March	4,200
April	2,400

The selling price per unit is $16 each. All sales are on account and, based on historical data, the company has the following accounts receivable payment experience:

Percentage paid in the month of sale 40% Percentage paid in the month after sale 55% Percent lost to uncollectible accounts 5%

Company policy requires that ending inventories for each month be 20% of next months sales.

a) Prepare a sales budget for February and March and provide total sales revenue.

Feb:

March:

b) Prepare a schedule showing the cash expected in payments on accounts receivable in February and March.

Feb:

March:

c) Prepare a production budget for February and March and provide the total units to produce.

Feb:

March: