Sales Budget
For the year ended December 31, 2020
	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Expected Sales (units)	10,000	11,000	12,000	14,000
Selling Price (/unit)	20	20	20	20
Total Budgeted Sales	200,000	220,000	240,000	280,000

Wilson Inc. does not collect all of the sales revenue in the period of sale. The accounts receivable department has budgeted for 85% of sales revenue to be collected in the period of sale and 15% to be collected in the next period. The accounts receivable beginning balance is $80,000.

• Please prepare the Schedule of Expected Cash Collections.

Schedule of Expected Cash Collections
	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Accounts Receivable, beginning balance	80,000
First quarter sales
Second quarter sales
Third quarter sales
Fourth quarter sales
Total cash collections

Wilson Inc. has spoken with the Production Department and determined that it would like to have a desired ending finished goods inventory of 20% of next periods sales. The assumed beginning inventory of finished goods for Q1 and the desired ending inventory of Q4 is provided.

• Please prepare the Production Budget.

Production Budget
For the Year Ended December 31, 2019
	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Budgeted Sales
Add: Desired ending inventory of finished goods				3,000
Total needs
Deduct: Beginning inventory of finished goods	2,000
Required Production