Badlands, Inc. manufactures a household fan that sells for $40 per unit. All sales are on account, with 40 percent of sales collected in the month of sale and 60 percent collected in the following month. The data that follow were extracted from the company's accounting records.
€¢ Badlands maintains a minimum cash balance of $30,000. Total payments in January 20x1 are budgeted at $390,000.
€¢ A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

€¢ March 20x1sales are expected to total 10,000 units.
€¢ Finished-goods inventories are maintained at 20 percent of the following month's sales.
€¢ The December 31, 20x0, balance sheet revealed the following selected figures: cash, $45,000; accounts receivable, $216,000; and finished goods, $44,700.
Required:
1. Determine the number of units that Badlands sold in December 20x0.
2. Compute the sales revenue for March 20x1.
3. Compute the total sales revenue to be reported on Badlands' budgeted income statement for the first quarter of 20x1.
4. Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.
5. Calculate the number of units in the December 31, 20x0, finished-goods inventory.
6. Calculate the number of units of finished goods to be manufactured in January 20x1.
7. Calculate the financing required in January, if any, to maintain the firm's minimum cash balance.

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Cash Receipts February From December 31 accounts receivable From January sale. From February sales January $216,000 152,000 $228,000 156,800