Question
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted units sales: first quarter 17,900, second quarter
The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.
Budgeted units sales: first quarter 17,900, second quarter 16,900, third quarter 15,900, forth quarter 16,900
The selling price of the companys product is $31.00 per unit. Management expects to collect 85% of sales in the quarter in which the sales are made and 10% 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 $85,000.
The company expects to start the first quarter with 5,100 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 5,300 units.
Compute the companys total sales.
Total sales: 1st quarter ?, 2nd quarter ?, 3rd quarter ?, 4th quarter ?, year $?
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