Sunshine has provided us with the following forecasted sales for the first 3 months of the year:

	Jan	Feb	Mar
Budgeted unit sales	34,000	36,000	27,000

The selling price is expected to be $10 per unit. Based on historical data, 20% of sales are in cash and remainder on account.

Sales on account:

30% of a months sales are collected in the month of sale, 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts can be ignored. November sales totaled $410,000, and December sales totaled $440,000.

Required:

Must show calculations.

Prepare a sales budget by month.

Prepare a schedule of expected cash collections by month.