Team Members Notification (changes only) - July 11, 2022 ery Smooth Inc. manufactures mats that are sold to wholesalers and retailers and which are timately sold to homeowners and business owners. Management is preparing detailed budgets or the first quarter, January to March, and has put together the following information to assist. 1. The Marketing Department has estimated sales as follows for the first six months of the year. January February March 6,500 April 5,000 May 4,000 June 3,000 2,500 2,000 The selling price of each mat is $60 2. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern. 50% in the month of sales 45% in the month following sale 5% uncollectible The beginning accounts receivable balance (excluding the uncollectible amounts) on January 1 will be $160,000. 3. The company maintains finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods on January 1 will be 1,300 mats. 4. Each mat requires 3 kilograms of rubber. To prevent shortages, the company would like the inventory of rubber on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of rubber on hand at January 1 will be 3,720 kilograms.