1. Fourth-quarter sales for 2019 are 60,000 units. Third quarter sales were 55,000 units.
2. Unit sales by quarter are projected as follows:

First quarter 2020 65,000

Second quarter 2020 70,000

Third quarter 2020 75,000

Fourth quarter 2020 80,000

First quarter 2021 70,000

Second quarter 2021 80,000

Each unit sells for $85. Campus Bookshelves estimates that 50% of sales will be collected in the quarter of sale. The company also estimates that 20% will be collected in the quarter following the sale and that 30% of each quarters sale will be collected in the second quarter following the sale.

3. Campus tries to maintain at least 20% of next quarter sales forecast in inventory.
4. Each bookshelf unit uses three hours of direct labor, three pieces of wood, and four cement moldings. Laborers are paid $10 per hour, one piece of wood costs $8, and cement moldings are $.75 each.
5. At the end of each quarter, Campus plans to have 20 percent of the wood needs and 30 percent of the molding needs for the next quarters projected production needs.
6. Campus buys wood and cement moldings on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 30^th of each month.
7. Fixed overhead totals $500,000 each quarter. Of this total, $200,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred.
8. Variable overhead is budgeted at $2 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred.
1. Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation.
10. Variable selling and administrative expenses are budgeted at $6
11. per unit sold. All selling and administrative expenses are paid for in the quarter incurred.
50. Campus will pay quarterly dividends of $150,000.
1000. At the end of the first quarter, a $175,000 long-term debt payment will be made.
14. At the end of the fourth quarter, $550,000 of equipment will be purchased.
15. Campuss beginning cash balance is $300,000. A minimum balance of $250,000 must be maintained at quarter end. The company has access to a line of credit and borrows at the end of the quarter, when necessary. Repayments are made as soon as sufficient funds are available. Interest of 5% is due quarterly at the end of the quarter. (Use an IF/THEN statement to compute borrowing.)