Exercise 22-6 (Algo) Manufacturing: production budgets LO P1 Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 172,800 units. The following unit sales are budgeted during the rest of the year: second quarter, 432,000 units; third quarter, 303,000 units; and fourth quarter, 483,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. QS 22-23 (Algo) Cash budget LO P2 Santos Company is preparing a cash budget for February. The company has $17,000 cash at the beginning of February and budgets $67,000 in cash receipts from sales and $110,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.)