125% 2 reart Table ht Tech Srana Mensament Chishorala Format Organize Add Category Production Buxgal + Assumption S Budget Sle Sheet Name Accounting 202 - Managerial Fundamentals Assumptions Background Duplicate Shant Delete Shaat Frenchies is a medium-sized regional bakery that specializes in providing orders to grocery and convenience stores. Because of the popularity of ils brand, it has also opened a small cale for walk-in business. In order to maintain its high qualily standard, Frenchies produces only three products: breakfast mullins, fresh bread, and chocolate chip cookies. Allhough business has been good in the past few years. a lucky conlace with a large chain has recently allowed it to expand ils brand oul of the local region. Growth has been high since the new contract went into elect. In 2020, Frenchies sold 45,000 one-dozen packages of mullins for $5.50 each, 65,000 one-dozen packages of cookies for 54.75 each, and B5,000 one-dozen loaves of bread for $5.25 each. They will raise prices to $8.00 for mullins, 55.25 for cookies, and $5.75 for bread for 2021. Sales will drop some in the first quarler of 2021. They always drop off a bil after the holidays anyway, but with the increase in sales prices, a 20 percent drup from the fourth quarler of 2020 results is forecasted. Sales will grow steadily at about 5 percent a quarter with these new prices during 2021. Fourth-quarter will be high because of the holidays let's say 20 percent, instead of 5 percent, from the third to the fourth quarter. The first quarler of the 2022 will continue the 5 percent growth as though the holiday jurnp didn't Decur. Frenchies gives their business customers a lot of leeway in paying. They collect 30 percent of the credit sales within the current quarter, 45 percent in the following quarter, and 25 percent in the quarter afler thal Tolal sales were $202,000 in third quarter and $1,002.500 in the fourth quarter of 2020. They will be still collecling quite a bit of that money in 2021 based on our colection breakdown. Frenchies cookies and bread would dry out if they kept them too long so they normally keep only about two days' worth of inventory on hand to avoid shipping issues or problems with the care based on a 90-day quarter. Frenchies' raw malerials are needed for the next quarter, so they keep 15 percent of the next quarter's raw malerials on hand at all times. Using this information, complele the three labs in the worksheel. Just fill in the forecasted . dala in the blue boxes and copy the formulas lo complete the sheels. Case Data = Signifies original case assurnptions Estimated drop: Estimated Growth Esimated Accitional Holday Increase: M.Mins Cook Brend Salas Numbers Trnaposed for Copying Last Year 04 45.000 65,000 85000 Muffins 2021 09 Current YAAR Q1 03 04 0 0 2022 Q1 02 C 0 C 0 Cookies 2021 04 01 03 01 2022 02 0 Nexl Yay 04 0 O 0 0 0 Bread 20:22 2021 a2 Q1 03 Q4 Q1 Q2 Salsa Picottam: SE.CO $5.25 55.75 a 0 Collection Information: Creil Policy Cash Sales Crevil Selus Galation in Ourent Quarter Colection in Falowing Duarter Colecion in 3rd Quarter Prior Year 106. 9095 30% , Try 25% Arrel YAHI 10% Collection Schedule Transposed for Copying 90% Q1 Q2 as 30% 37.0% 40.5% 225% , 45% 25%