For the first quarter of 2021, ABC Firm prepared the following sales budget and purchases budget. Unit Sales SP Sales Sales Budget April May 4,600 3,500 8 8 36,800 $ 28,000 $ June 7,300 8 58,400 $ Total 15,400 8 123,200 $ June Total Unit Sales Unit Required BI Units 2 B Purchased Cost Purchases Purchases Budget April May 4,600 3,500 700 1,460 5,300 4,960 890 700 4,410 4,260 7,300 660 7,960 1,460 6,500 5 32,500 $ 15,400 660 16,060 890 15,170 5 75,850 5 $ 22,050 $ 21,300 $ The firm sells 75% of its items on account. Of the items sold on account, 20% are collected in the month of the sale. The month after the sale, the firm collects 50% and the month after that, it collects 25% Actual units sales in January were 4,800. In February unit sales were 2,700 and in March, they were 5,900. 1. What is the firm's apparent policy for inventory on hand at the end of each month? 2. What are expected unit sales for July? 3. Prepare a properly formatted budget of cash collections