110 points upcoming fooal year 16,000 15.000 14,000 The selling price d the oonp
ID: 2408923 • Letter: 1
Question
110 points upcoming fooal year 16,000 15.000 14,000 The selling price d the oonpany's potet S24,00 per urg Management expects to colect 75% of sales inthe quarter nwehte sales sre made, 20% r to follow ng quarter,and 5% of sales ?e espe tobe uncolecible The begirning balance of accounts receivable sl of which is expedted to be collected in the first quarter, is 333,000 The oompany expects to start the first quarter wts 2.400 units in finished poods inventory Management esres an ending nrished goods invertory:n each paner equal to 15% of he net aire's buped sales. The desired anding Enished goods invertory for the fourth quartor is 2 600 units Required 1a. Compute the company's total sales. Sales Budget 2nd Seling price per unt Total saies tb. Complele the schedule of expected cesh collections. (Do not round intermediate cslculations ist 2nd 3rd Accounts recelvable, beginning balance 1st Quarter sales 2nd Quarter ssies 3ed Quarler saies Total cash colections 2Prepare the comparys production budget for the uppoming cel yeer 1st Quarter 2nd GQuarter 3rd Quarter Toral units neededExplanation / Answer
SALES BUDGET Q1 Q2 Q3 Q4 YEAR Budgeted Sales units 15,000 15,000 14,000 15,000 59,000 Selling price per unit 24 24 24 24 24 Total Sales 360,000 360,000 336,000 360,000 1,416,000 EXPECTED CASH COLLECTIONS Q1 Q2 Q3 Q4 YEAR beginin Accounts receivable 63,000 63000 Q-1 sales 270,000 72000 342000 Q-2 270000 72000 342000 Q-3 252,000 67,200 319,200 Q-4 Sales 270,000 270000 Total Cash Collections 333,000 342,000 324,000 337,200 1336200 PRODUCTION BUDGET Q1 Q2 Q3 Q4 YEAR Budgeted Sales Units 15,000 15,000 14,000 15,000 59,000 Add: Desired Ending Finished inventory 2,250 2,100 2,250 2,600 2,600 Total Needs 17,250 17,100 16,250 17,600 61,600 Less: Beginning Finished Inventory 2,400 2,250 2,100 2,250 2,400 Required Production in units 14,850 14,850 14,150 15,350 59,200
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