Question

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) 1st Quarter 2nd Quarter 3rd Quarter 14,000 4th Quarter 13,000 Brudgeted unit sales 11, 000 12,000 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 receivable, 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 destres an ending finished goods Inventory in each quarter equal to 15% of the next quarter's budgeted sales. The destred 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 1 Required 2 Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total sales

Answer 1

- computation of the estimated sales for I each quarter and for the year as a whole loosy loop ho Quarters at Solan) Tist ahd. 3rd 4th Year Budgeted unit sales 11000 12000 14000 13000 50.000 Selling porice per oor 518 $18 $18 $ 18 Total sales 198000€ 214000 $252004 $234000 $9,00.000 3 calculation of the expected cash collections, for each quarter and for the year as a whole year Quarters ist. I zhd Izrd Begining balance of account receivable $70200 - 65.) of sales collected as the quarter an which sales are made $128700 & 140400 $163800 $152100 301. Collected an following quarter - $59400 $64.800 $75600 cash collected $198900 $199.900 $228600 $22.4700 $855000

ча 3) calculation of production units a Lo Quarters in शगता। unit sales 4000 12000 14000 13000 Ending Puentory 1800 | 2100|(950 1850 Beginning out Qnventory (1650) (1800) (2100)/1950) production Gn ccnits 11150 12300 13850/12900 50200 - 19