The marketing department of Graber Corporation has submitted the following sales
ID: 2374640 • Letter: T
Question
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.
The selling price of the company%u2019s product is $26.00 per unit. Management expects to collect 70% of sales in the quarter in which the sales are made, 20% in the following quarter, and 10% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $65,000.
The company expects to start the first quarter with 2,400 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter%u2019s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,600 units.
Compute the company%u2019s total sales.
Complete the schedule of expected cash collections. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)
Prepare the company%u2019s production budget for the upcoming fiscal year. (Input all amounts as positive values. Do not round intermediate calculations.)
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.
Explanation / Answer
1st Quarter2nd Quarter3rd Quarter4th Quarter Budgeted ============================================================================================================================================================================================ unit sales 12,000 11,000 10,000 11,000 ============================================================================================================================================================================================ selling price of the company%u2019s product is $26.00 per unit ============================================================================================================================================================================================ Sales = 312000; 286000; 260000; 286000 ============================================================================================================================================================================================ 70% of sales in the same month = 218400; 200200; 182000; 200200 ============================================================================================================================================================================================ 20% in next month = 62400; 40040; 36400; 40040; ============================================================================================================================================================================================ Receivables = 40040;+ (20% in next month = 62400; 40040; 36400; 40040;)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.