Question

The marketing department of Jess! Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account: th lat Quarter 11,000 2nd 3rd Quarter Quarter 12,000 14,000 Badgeted unit Quarter 13,000 The selling price of the company's product is $18.00 per unit Management expects to collect 65% of sales in the quarter in which the sales are made, 30% In the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts recelvable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods Inventory Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods Inventory for the fourth quarter is 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Required Required Required Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole 2nd Quarter 3rd Quarter Quarter Quarter Year Total sales Required 2 >

Answer 1

Sales Budget litevarden luna Quarter Budgeted amit Sales1,000 12.000 Selling price perunit $18 * $ 18 Qureten ist ausuler year 10000 13.000 7 50,000 518 $18 $18 Total sales $198,000 $216,000 $2509,000 $234,000 $900,000 20 1 Schedule of Expected Cash collections Test Quarter (2nd Quarter 3 Quaster von Quarter Year Beginning Balance $70,200 40 do. I $0 | $ 70,000 244 Quarter Sales 128,700 59,400 0 1 0 $ 188,100 and Quarter sales o 1140,400 64,000 18205,200 god Quarter Sales 0 | 0 | 163,800 75,600 239,400 -Tyen Quarter Sales 001 158,100 $1529,100 Total Cash Collection #198,9001*199,800 $228,600 + 227,700 $855,000

Production Budget | pst Quarter and Quarter good Quarter con Quarter year Budgeted emis-sales 11000 12000 | 14000 | 13000 | 50000 Ah Defixed Cuoliny 1900ploo 1950 11850 1850 - Juventory Total Courts needed | 12800 141001595014850 | 51850 Loss: Beginning Inventing 1650 1800 1100 1950 1650 | Required Production / 11,150 1,300 | 13,850 19,900 | 50,200
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