1. The sales budget is provided below for the product of Company ABC.

Jan	10,000 units
Feb	40,000 units
Mar	50,000 units
Apr	60,000 units
May	40,000 units

1. Finished goods at the end of each month must be 20% of the next months budgeted sales.
2. On Dec 31 of the last year, the finished goods totaled 3,000 units.
3. The selling price is $1 per unit.
4. 70% of the credit sales are collected in the month of sale, 25% in the month following sale, and the remainder are uncollectible.