product that sells at $$20$ per unit and sells best on Valentine's Day and Mother's Day. As a result peak sales occur in February and May of each year. Budgeted sales in units for the first six months of the coming year are:

$0$

$\backslash$table$[[$Month$,$Units$],[$January$,12,000],[$February$,32,000],[$March$,18,000],[$April$,34,000],[$May$,30,000],[$June$,15,000]]$

$25\%$ of all sales are cash sales and the rest are on account. Past experience shows that the company collects $25\%$ of a month's credit sales in the month of sale. Another $65\%$ of credit sales is collected in the month following sale, and the remaining $10\%$ of credit sales is collected in the second month following sale. Bad debts are negligible and can be ignored.

To ensure that sales volumes can be met, the company requires that ending inventory for a particular month reflect $15\%$ of next month's sales. Assume June $30$ closing inventory will be $1,500$ units.

Required:

a$)$ Prepare a sales budget in dollars and a schedule of cash collections from sales, by month and in total, for the second quarter $(10$ marks$).$

Bloom Corp. Sales Budget