SCHEDULE 1 D A C E F B Hampton Freeze, Inc. Sales Budget W N - For the Year Ended December 31, 2017 Quarter 2 3 4 Year Budgeted unit sales (in cases) 10,000 30,000 40,000 20,000 100,000 8 Selling price per unit $ 20.00 $ 20.00 $ 20.00 $ 20.00 20.00 9 Total sales $200,000 $600,000 $800,000 $400,000 $ 2,000,000 10 11 70% 30% 12 Schedule of Expected Cash Collections 13 Beginning accounts receivable $/90,000 $ 90,000 14 First-quarter sales 140,000 $ 60,000 200,000 15 Second-quarter sales 420,000 $ 180,000 600,000 16 Third-quarter sales 560,000 $240,000 800,000 17 Fourth-quarter sales 280,000 280,000 18 Total cash collections $230,000 $480,000 $740,000 $520,000 $ 1,970,000 Budgeting Assumptions Schedule 1 /Schedule 2 Schedule 3 5c0 'Cash collections from last year's fourth-quarter sales. See the beginning balance sheet in Exhibit 8-3. 2$200,000 x 70%; $200,000 x 30%. 3$600,000 x 70%; $600,000 x 30%. 4$800,000 x 70%; $800,000 x 30%. 5$400,000 x 70%. Uncollected fourth-quarter sales ($120,000) appear as accounts receivable on the company's end-of-year ud holomen budgeted balance sheet (see Schedule 10).SCHEDULE 2 B C D E F A Hampton Freeze, Inc. Production Budget For the Year Ended December 31, 2017 6 (in cases) Assumed 8 Quarter 2 3 Year 10 Budgeted unit sales (Schedule 1) 10,000 30,000 40,000 20,000/100,000 20% 20% 20% 11 Add desired units of ending finished goods inventory* 6,000 8,000 4,000 3,000 3,000 12 Total needs 16,000 38,000 44,000 23,000 103,000 13 Less units of beginning finished goods inventory 2,000 6,000 8.000 4.000 2,000 14 Required production in units 14,000 32,000 36,000 19,000 101,000 15 16 Budgeting Assumptions Schedule 1 Schedule 2 / Schedule 3 / Schedul *Twenty percent of next quarter's sales. For example, the second-quarter sales are 30,000 cases. Therefore, the desired ending inventory of finished goods for the first quarter would be 20% x 30,000 cases = 6,000 cases. "The beginning inventory in each quarter is the same as the prior quarter's ending inventory.Ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 11,000 12,000 14,000 13,000 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 $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Required: 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to [ Schedule 1 for guidance.) 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to & Schedule 1 for guidance.) 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (Hint: Refer to _ Schedule 2 for guidance.)