FOR THIS question why did we not calculate the accounts receivable? or is how it is done incorrect?

Q: The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Budgeted unit sales	16,000	15,000	14,000	15,000

The selling price of the company's product is $22.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made and 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $66,000.

The company expects to start the first quarter with 3,200 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 3,400 units.

Answer:

Thus, sales budget and cash collection budget have been prepared.

Explanation:

Cash Collection Budget

Particulars	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Sales ($)	352,000	330,000	308,000	330,000
Collection in same month@75% of sales	264,000	247,500	231,000	247,500
Collection in next month@20% of Current month sales	66,000	70,400	66,000	61,600
Total Collections	$330,000	317,900	297,000	309,100

Sales Budget

Particulars	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Total
Sales (units)	16,000	15,000	14,000	15,000	60,000
Sales ($) @$22 per unit	352,000	330,000	308,000	330,000	1,320,000