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need answers fastly please Michael Scott Paper Company has begun its first year of operations. Michael has heard that you are an expert on budgeting
need answers fastly please
Michael Scott Paper Company has begun its first year of operations. Michael has heard that you are an expert on budgeting and has asked you to help him prepare some relevant budgets. He has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 15,000 30,000 18,000 9,000 The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% 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 $60,000. The company expects to start the first quarter with 3,000 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 30% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 4,100 units. Required: You may use the table provided to complete the budgets, or upload a Microsoft Word, Microsoft Excel, or PDF file. a) Compute the company's total sales. b) Complete the schedule of expected cash collections. c) Prepare the company's production budget for the upcoming fiscal yearStep by Step Solution
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