Questions #1

QUESTION #2

Question #2

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 12,900 3.900 15,900 14,900 The selling price of the company's product is $28 per unit. Management expects to collect75% of sales in the quarter in which the sales are made, 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 $74,000. The company expects to start the first quarter with 2,580 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 2,780 units. Required: 1-a. Compute the company's total sales. Jessi Corporation Sales Budget Year 1st Quarter 2nd Quarter 3rd Quartel 4th Quarter Budgeted units sales Selling price per unit Total sales 1-b. Complete the schedule of expected cash collections. Jessi Corporation Schedule of Expected Cash Collections st Quarter 2nd Quarter 3rd Quarter 4th Quarter Yea Beginning accounts receivable 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections