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2 012317 Exercise 2 The marketing department of Payero Corporation has submined the following sales forecast for the upcoming fiscal year (all sales are on
2 012317 Exercise 2 The marketing department of Payero Corporation has submined the following sales forecast for the upcoming fiscal year (all sales are on account Budgeted unit sales Ist Quarter 2nil Quarter 12,000 15,000 3rd Quarter 15,000 4th Quarter 14,000- The selling price of the company's product is $19 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 $72,200 The company expects to start the first quarter with 2,400 units in finished goods inventory Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2.600 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. < Prev 2 of 10 Next > 1:12 PM 68F Cloudy 5030022
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