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5 Badlands Inc, manufactures a household fon that sells for $25 per unit. All sales are on account, with 40 percent of sales collected in

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5 Badlands Inc, manufactures a household fon that sells for $25 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 10 Badlands maintains a minimum cash balance of $25,000 Total payments in January 20xt are budgeted at $240.000 A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period: Tron December 21 accounts receivable Tron January sales From February sales Cash Receipt January February $114,000 120,000 $180,000 74,700 Print References March 20x1 sales are expected to total 9,000 units Finished goods inventories are maintained at 30 percent of the following month's sales The December 31, 20x0, balance sheet revealed the following selected figures: cash, $22,800; accounts receivable, $114,000, and finished goods, $22,800 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 1 December sales 2 March sales revenue 3. First quarter sales revenue 4 March 31 accounts receivable balance 5. December 31 finished goods inventory 6 Finished goods to be manufactured in January 7 Financing required in January units units

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