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Barnes Sporting Equipment Inc. has submitted the following sales forecast for the upcoming fiscal year: 151; Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales
Barnes Sporting Equipment Inc. has submitted the following sales forecast for the upcoming fiscal year: 151; Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales (units) 9, 600 11, 600 13, 600 12, 600 The selling price of the company's product is $36 per unit. Management expects to collect 55% of sales in the quarter in which the sales are made and 40% in the following quarter; 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the rst quarter, is $96,500. The company expects to start the first quarter with 2,800 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending nished goods inventory for the fourth quarter is 3,050 units. Required: 1a. Prepare the company's sales budget. Total sales 1b. Prepare the schedule of expected cash collections. Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 2. Prepare the company's production budget for the upcoming fiscal year. Total units needed
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