Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. First Quarter 25,000 Second Quarter 22,200 Third Quarter 20, 100 Fourth Quarter 23,000 Budgeted unit sales The light sells for $30 per unit and all sales are on account. 75% of sales are expected to be collected in the quarter of sale, with the remainder in the following quarter. Accounts receivable at the beginning of the quarter were $172,000 and will all be collected during the first quarter of the year. At the end of the previous quarter there were 2,300 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Required: 1-a. Prepare the company's sales budget. Year First Quarter 25,000 30 750,000 $ Second Quarter 22,200 Budgeted unit sales Selling price per unit Total Sales Third Fourth Quarter Quarter 20,100 23,000 30 30 603,000 $ 690,000 $ 91,300 30 30 $ 666,000 $ 2,739,000 1-b. Prepare the schedule of expected cash collections. FORTIN LIMITED Schedule of Expected Cash Collections First Second Third Quarter Quarter Quarter $ 172,000 Fourth Quarter Year Accounts receivable, beginning balance $ 172,000 Schedule of Expected Cash Collections First Second Third Quarter Quarter Quarter $ 172,000 Fourth Quarter Year $ 172,000 Accounts receivable, beginning balance 1st Quarter sales 0 2nd Quarter sales OF 3rd Quarter sales 0 4th Quarter sales 0 Total cash collections 172,000 $ 0 $ 0 $ $ 172,000 2. Prepare the company's production budget for the upcoming fiscal year. FORTIN LIMITED Production Budget Second Quarter First Quarter Third Quarter Fourth Quarter Year Budgeted unit sales Total units needed 0 0 0 0 0 Required production 0 0 0 0 0