Badlands, Inc. manufactures a household fan that sells for $25 per unit. All sales are on account, with 30 percent of sales collected in the month of sale and 70 percent collected in the following month. The data that follow were extracted from the companys accounting records.

Badlands maintains a minimum cash balance of $20,000. Total payments in January 20x1 are budgeted at $210,000.

A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

	Cash Receipts
	January			February
From December 31 accounts receivable	$	119,000
From January sales		83,000		$	128,000
From February sales					73,500

March 20x1 sales are expected to total 7,800 units.

Finished-goods inventories are maintained at 25 percent of the following months sales.

The December 31, 20x0, balance sheet revealed the following selected figures: cash, $23,200; accounts receivable, $119,000; and finished goods, $23,400.

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 firms minimum cash balance.

1.	December sales		units
2.	March sales revenue
3.	First quarter sales revenue
4.	March 31 accounts receivable balance
5.	December 31 finished-goods inventory		units
6.	Finished goods to be manufactured in January		units
7.	Financing required in January