Question
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd
The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
Budgeted unit sales | 12,500 | 13,500 | 15,500 | 14,500 |
The selling price of the companys product is $24 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 $73,200. |
The company expects to start the first quarter with 2,500 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 2,700 units. |
Required: |
1-b. | Complete the schedule of expected cash collections. |
Jessi Corporation | |||||
Schedule of Expected Cash Collections | |||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year | |
Beginning accounts receivable | $0 | ||||
1st Quarter sales | 0 | ||||
2nd Quarter sales | 0 | ||||
3rd Quarter sales | 0 | ||||
4th Quarter sales | 0 | ||||
Total cash collections | $0 | $0 | $0 | $0 | 0 |
2. | Prepare the companys production budget for the upcoming fiscal year. |
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