JackJoe, Inc. manufactures and sells toy mice. All of the company's sales are on credit and half is collected during the quarter of the sale and the remainder in the following quarter. The assumed beginning finished goods inventory is in accordance with the assumption below. There are no budgeted sales in Q2 20x1. Other assumptions are as below.

1. Create a sales budget for Q3 and Q4 showing all necessary variables. Select a sales price between $4.75 and $4.99 (5 points).

2. Create a production budget for Q3 and Q4 (please select a required ending inventory of next period's sales between 26% and 61% . (5 points).

3. Prepare a cash receipts budget for Q3 and Q4 showing all required variables. (5 points).

4. What are three assumptions that could be changed to increase cash receipts in Q3. Please describe the assumption change and how this would impact cash receipts (5 points). You may use electronic spreadsheets for calculation purposes, but please upload a pdf of your handwritten work.

PRICE PER UNIT: $4.50

REQUIRED ENDING FINISHED GOODS INVENTORY OF NEXT Q SALES: 28%

Assumptions	Q3 20x1	Q4 20x1	Q1 20x2
Units sold	100,000	60,000	25,000
price per unit	$4.50	$4.50	$4.50
Required ending finished goods Inventory of next Q sales	28%	28%	28%
Required ending raw materials inventory of next Q used in production	25%	25%	25%
Units of raw materials per finished goods units	1	1	1
Cost per unit of raw materials	$1.00	$1.00	$1.00

Rubric

Rubric

Rubric

Criteria Ratings Pts This criterion is linked to a Learning OutcomeSales Budget 5 pts Full Marks 0 pts No Marks 5 pts This criterion is linked to a Learning OutcomeProduction Budget 5 pts Full Marks 0 pts No Marks 5 pts This criterion is linked to a Learning OutcomeCash receipts 5 pts Full Marks 0 pts No Marks 5 pts This criterion is linked to a Learning OutcomeCash flow improvements 5 pts Full Marks 0 pts No Marks 5 pts Total Points: 20