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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

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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 Second Third Fourth Quarter Quarter Quarter Quarter Budgeted unit sales 24,000 21,500 20,600 21,180 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 quartet. Accounts receivable at the beginning of the quarter were $165,000 and will all be collected during the first quarter of the year At the end of the previous quarter there were 2.200 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 Budgeted unit sales Selling price per unit TA First Quarter 24.000 30 720 mm Second Quarter 21,500 30 45 mm Third Quarter 20.600 30 618 Fourth Quarter 21,100 30 R3 87,200 30 2010 1-b. Prepare the schedule of expected cash collections FORTIN LIMITED Schedule of Expected Cash Collections First Second Third Quarter Quarter Quarter 165,000 Fourth Quarter Year $ 165,000 0 0 0 Accounts recoivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 0 0 0 0 $ $ 165,000 $ 165,000 2. Prepare the company's production budget for the upcoming fiscal year. FORTIN LIMITED Production Budget 2. Prepare the company's production budget for the upcoming fiscal year FORTIN LIMITED Production Budget First Second Quarter Quarter 24,000 21,500 Year Third Quarter 20.600 Fourth Quarter 21,100 87,200 Budgeted unit sales 21,100 20,600 24,000 21,500 87.200 Total units needed 24,000 21,500 20,600 21,100 87 200 Required production

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