The PDQ Company makes collections on credit sales according to the following schedule: 40% in month of sale 55% in month following sale 5% uncollectible The following sales have been budgeted:

Cash collections in May would be:

Marco, Inc., has budgeted sales in units for the next four quarters as follows:

Past experience has shown that the ending inventory for each quarter should be equal to 20% of the next quarter's sales in units. The company needs to prepare a production budget for the next four quarters. The total number of units produced in the third quarter should be:

\begin{tabular}{llllr} & \multicolumn{4}{c}{ Quarter } \\ \cline { 2 - 5 } & First & Second & Third & Fourth \\ Production in units & 10,000 & 12,000 & 16,000 & 14,000 \end{tabular}