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The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 14,000 Budgeted unit sales 15,000 16,000 15,000 The selling price of the company's product is $22.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% 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 $63,000. The company expects to start the first quarter with 2,400 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 2,600 units. Required: la. Compute the company's total sales 3rd Quarter 1st Quarter 2nd Quarter 4th Quarter Total sales 1b. Complete the schedule of expected cash collections. (Do not round intermediate calculations. Leave no cells blank-be certain to enter "0" wherever required. Graber Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections Year 4th Quarter Year
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