The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year:

The selling price of the companys product is $20 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made and 30% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $80,500.

The company expects to start the first quarter with 2,000 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,250 units.

Required:
1-a.	Prepare the company's sales budget.

1-b.	Prepare the schedule of expected cash collections.

2.	Prepare the company's production budget for the upcoming fiscal year.

1st Quarter 8,000 2nd Quarter 10,000 3rd Quarter 12,000 4th Quarter 11,000 Budgeted sales (units) JESSI CORPORATION Sales Budget 2nd Quarter 3rd Quarter 1st Quarter 4th Quarter Year Total sales JESSI CORPORATION Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections $ 0 $ 0 $ 0 $ 0 $ 0 JESSI CORPORATION Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total units needed