)ACCT 2250

Gilya Company specializes in unique baskets. The company has budgeted the following sales for the rst four months of the year: Month Expected sales in units January 2,000 February 3,000 March 10,000 April 1,000 The selling price of the baskets is $30 per unit. Based on history, the company expects that 10% of sales are cash received in the month of sale. Ofthe credit sales, half is collected one month after sale and the remainder is collected two months after sale. Accounts receivable as atJanuary 1st was $50,000; all of which is expected to be collected in January. The company wants ending inventory to be equal to 20% ofthe following month's budgeted sales in units. On January 1st, 500 units were on hand. Required: a. Prepare a sales budget for the first quarter of the year. b. Prepare a schedule of expected cash collections for the rst quarter of the year. c. Prepare a production budget for the first quarter of the year