PARTII.PROBLEM SOLVING. (40 Marks) Directions. Read the problems carefully, analyze and solve them. Write legibly your answer and attach your works. Question 1: Lowell Company plans to sell 1,200,000 units of finished product in July and anticipates a growth rate in sales of 10% per month. The desired monthly ending inventory in units of finished product is 25% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Compute the production requirement in units of finished product for the July-September. (Marking Scheme: 1 mark each x 10 = 10 marks) Question 2: Atlanta Company makes collections on sales according to the below schedule. The Treasury Manager conducts an analysis of the cash collection and determines that cash collection target for March should be $150,000. Evaluate whether the collection target for March is correct and summarize your recommendations. (10 marks) Expected Sales Month January $ 150,000 February $ 180,000 March $ 200,000 50% in the month of sale 30% in the month following sale 20% in the second month following sale