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

Jan	30,000 units
Feb	20,000 units
Mar	10,000 units
Apr	20,000 units
May	30,000 units

1. Finished goods at the end of each month must be 10% of the next months budgeted sales.
2. On Dec 31 of the last year, the finished goods totaled 2,000 units.
3. The selling price is $1 per unit.
4. 80% of the credit sales are collected in the month of sale, 15% in the month following sale, and the remainder are uncollectible.

1. Prepare a budget showing the required production each month for January, February, March, and the quarter. (5 marks)
2. Prepare the cash collection for each month for January, February, March, and the quarter. (5 marks