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Template format attached :) Sheen Company purchases and sells two products, Prodone and Prodtoo. The company is in the process of preparing its profit plan

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Sheen Company purchases and sells two products, Prodone and Prodtoo. The company is in the process of preparing its profit plan for the upcoming third quarter ending September 30,20X8. The following information has been gathered in order to prepare its budgets. The company expects to have the following sales in units for the indicated months of the year SHEEN COMPANY ESTIMATED REVENUES FOR JUNE THROUGH OCTOBER 20X8 Month Prodone Prodtoo June July August 10,000 14,000 20,000 25,000 30,000 15.000 18,000 17,000 22,000 32.000 October Each unit of Prodone sells for S25 and each unit of Prodtoo sells for S35. The company sells 20% of its products for cash, with the remainder sold on account. The company collects its accounts receivable in the following manner: 60% in the month ofsale, 25% in the month following sale, and 13% in the second month following the sale. The remaining 2% is considered bad debt expense and is not expected to be collected. The company desires to maintain the following ending inventories of merchandise: Prodone, 25% of the following month's sales in units; Prodtoo, 40% of the following month's sales in units. The company pays for its purchases in the following manner: 80% in the month of purchase and 20% in the month following purchase. The company expects to pay S10 per unit for Prodone and S22 for each unit of Prodtoo, The company expects to have the following expenses during the third quarter, in addition to any expenses related to sales and purchases discussed above

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