Sisindi Home The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales (units) 10,000 12,000 14,000 13,000 The selling price of the company's product is $40 per unit. Management expects to collect 60% of sales in the quarter in which the sales are made and 35% in the following quarter, 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which are expected to be collected in the first quarter, is $100,500 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 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 3,250 units Required: 1-a. Prepare the company's sales budget JESSI CORPORATION Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 400,000 s 480.000 s 560,000 $ 520,000 s Total sales Year 1,960,000 1.b. Prepare the schedule of expected cash collections 1-b. Prepare the schedule of expected cash collections JESSI CORPORATION Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Accounts receivable beginning balances 100,500 $ 100,500 1st Quarter sales 240,000 140,000 380,000 2nd Quarter sales 288 000 168.000 456,000 3rd Quarter sales 336.000 196.000 532,000 4th Quarter sales 312,000 312.000 Total cash collections $ 340,500 $ 428,000 $ 504,000 $ 508 000 $ 1780 500 2. Prepare the company's production budget for the upcoming fiscal year. Year Actual sales units) Add Desired ending inventory Total units needed Deduct Beginning inventory Budgeted sales (units) JESSI CORPORATION Production Budget 1st Quarter 2nd Quarter 3rd Quarter 10,000 12.000 14.000 1,800 2.100 1.950 11 800 14,100 15,950 3.000 1.800 2.100 8.800 12.300 13850 4th Quarter 13.000 3.250 16 250 1950 14.300 49.000 3250 52.250 3.000 49.250