Fast Run Company manufactures and sells Sports Shoes. Information on budgeted sales in units is given below. Use this information to answer all parts of question one.

Month	Sales in Units
November 2019	10,000
December 2019	9,000
January 2020	12,000
February 2020	11,000
March 2020	9,000
April 2020	7,000
May 2020	8,500

1. The selling price of the sports shoe is AED 90
2. All sales are on account. Based on past experience, sales are collected in the following pattern:

Month of sale	35%
Month following sale	60%
Second month following sale	05%

3. The company maintains finished goods inventories equal to 30% of the following month's sales. The beginning inventory of finished goods on January 1^st was 2,800 units
4. Each Bag requires 8 pounds of raw materials.
5. The company requires that the ending inventory of raw materials be equal to 25% of the following month's production needs. The beginning inventory of raw materials inventory was on January 1^st was 3,150 units
6. The raw material costs $11 per pound.
7. 35% of a month's purchases of raw materials is paid for in the month of purchase; the remaining is paid for in the following month.
8. The accounts payable on December 31^st will be $85,000.

Required:

1. Prepare a sales budget, by month and in total, for the First quarter.
2. Prepare a schedule of expected cash collections, by month and in total, for the First quarter.
3. Prepare a production budget for each of the months January, February, March and April .
4. Prepare a direct materials budget, by month and in total, for the First quarter.
5. Prepare a schedule of expected cash disbursements, by month and in total, for the First quarter.