Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1.10,.00 points The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year First Quarter Second Quarter Third Quarter
1.10,.00 points The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year First Quarter Second Quarter Third Quarter Fourth Quarter Budgeted unit sales 17,600 16,600 15,600 16,600 The selling price of the company's product is $36.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made and 20% 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 $82,000 The company expects to start the first quarter with 4,800 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 5,000 units Required 1-a. Compute the company's total sales. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total Sales633,600 597,600 561,600 597,600 2,390,400 1-b. Complete the schedule of expected cash collections. Graber Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter3rd Quarter 4th Quarter Year Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections $82,000 475,200 448,200 421,200 448,200 448,200 $ 421,200$448,2001,874,800 S 82,000 475,200 448,200 421,200 448,200 557,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started