Michael Scott Paper Company has begun it's first year of operations. Michael has heard that you are an expert on budgeting and has asked you to help him prepare some relevant budgets. He has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Budgeted unit sales 23,000 15,000 9,000 7,000 The selling price of the company's product is $17.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $64,000. The company expects to start the first quarter with 5,000 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 25% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 4,200 units. Required: You may use the table provided to complete the budgets, or upload a Microsoft Word, Microsoft Excel, or PDF file. 1.) Prepare the Sales Budget for next fiscal year. 2.) Prepare the Schedule of Expected Cash Collections Budget for next fiscal year. 3.) Prepare the Production Budget for next fiscal year. Michael Scott Paper Company Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted units sales Selling price per unit Total sales Michael Scott Paper Company Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning accounts receivable 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 4th Quarter Michael Scott Paper Company Production Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units