• (3points) Techworks Company sells its smartphone worldwide. The Company expects to sell 4,200 smartphones for $170 each in January and 3,800 smartphones for $200 each in February. All sales are cash $$ only. Techworks expects cost of goods sold to average 70% of Sales revenue. The Company also expects to sell 4,300 smartphones in March for $280 each. Techworks target ending inventory is $16,000 plus 40% of the next months cost of good sold.
• Prepare the sales budget for January and February (1 point)

Techworks Company
Sales Budget
	January	February	March
Units Sales	4200	3800	4300
Multiplied by Sales Price	170	200	280
Total Sales Revenue:	714000	760000	1204000

• Prepare the Companys cost of goods sold, inventory, and purchases budget for January and February. (2 points)

Techworks Company
Sales Budget
	January	February	March
Unit Sales	4200*
Plus: Desired ending inventory
Total needed
Less: Beginning Inventory
Units to produce