Required information Chapter 8: (Algo) Applying Excel (LO8-2, LO8-3, LO8-4] The Chapter 8 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. Chapter 8: (Algo) Applying Excel: Exercise (Part 2 of 2) Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Data Budgeted unit sales Selling price per unit 1 50,000 $7 Year 2 Quarter 2 3 70,000 105,000 4. 65,000 Year 3 Quarter 1 2 80,000 100,000 1 ECHIPEI U. APPymny LALCI 2 3 Data Year 3 Quarter 4 1 2 4 1 2 3 105,000 50,000 70,000 65.000 80,000 100,000 $ 7 per unit 65,000 $ $ 5 Budgeted unit sales 6 7 Selling price per unit 8 Accounts receivable, beginning balance 9 Sales collected in the quarter sales are made 10 Sales collected in the quarter after sales are made 11. Desired ending finished goods inventory is 12 1. Finished goods inventory, beginning 13 Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 15. Raw materials inventory, beginning 16. Raw material costs 17 Raw materials purchases are paid 18 and 19 Accounts payable for raw materials, beginning balance 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase 81,500 $ $ Sales Budget 1 Budgeted unit sales Selling price per unit Total Sales 40,000 $8 $320,000 Year 2 Quarter 2 3 75,000 100,000 $8 $8 $600,000 $800,000 4 50,000 $8 $400,000 Year 3 Quarter 1 2 70,000 80,000 $8 $8 $560,000 $640,000 Schedule of Cash collected from Customers Year 2 Quarter 2 3 4 1 $65,000 $240,000 $80,000 $450,000 Accounts Receivable, Beginning balance Q1 collections Q2 collections Q3 collections Q4 collections Total Cash Collections $150,000 $600,000 Year $65,000 $320,000 $600,000 $200,000 $800,000 $300,000 $300,000 $500,000 $2,085,000 $305,000 $530,000 $750,000 Budgeted Production (Units) Budgeted unit sales Add: Desired ending inventory Total needs Less: Beginning inventory Required production 1 40,000 22,500 62,500 12,000 50,500 Year 2 Quarter 2 3 75,000 100,000 30,000 15,000 105,000 115,000 22,500 30,000 82,500 85,000 50,000 21,000 71,000 15,000 56,000 Year 265,000 21,000 286,000 12,000 274,000 Year 3 Quarter 1 2 70,000 80,000 24,000 94,000 21,000 73,000 Year 3 Qtr 1 73,000 365,000 Purchase Budget Direct Material Required production (units) Material needed per unit of output (in pounds) Production needs( pounds) Add: Desired ending inventory Total needs (pounds) Less: Beginning inventory Budgeted purchase of material in pounds Cost of raw material per pound Costs of raw materials to be purchased 1 50,500 5 252,500 41,250 293,750 23,000 270,750 $0.80 $216,600 Year 2 Quarter 2 3 82,500 85,000 5 412,500 425,000 42,500 28,000 455,000 453,000 41,250 42,500 413,750 410,500 $0.80 $0.80 $331,000 $328,400 4 Year 56,000 274,000 5 280,000 1,370,000 36,500 36,500 316,500 1,406,500 28,000 23,000 288,500 1,383,500 $0.80 $0.80 $230,800 $1,106,800 Schedule of Cash payment for purchases Year 2 Quarter 2 3 1 $81,500 $129,960 Accounts payable Beginning balance Q1 Purchase Q2 Purchase Q3 Purchase Q4 Purchase Total Cash disbursements $86,640 $198,600 $132,400 $197,040 Year $81,500 $216,600 $331,000 $131,360 $328,400 $138,480 $138,480 $269,840 $1,095,980 $211,460 $285,240 $329,440 a. What are the total expected cash collections for the year under this revised budget? Expected cash collections for the year b. What is the total required production for the year under this revised budget? Total required production for the year c. What is the total cost of raw materials to be purchased for the year under this revised budget? Total cost of raw materials to be purchased for the year d. What are the total expected cash disbursements for raw materials for the year under this revised budget? Total expected cash disbursements for raw materials for the year