XYZ Company is a manufacturing company that produces a single product. XYZ has provided the

following sales budget for fiscal 2024, plus the first quarter of 2025

2024Q1 2024Q2 2024Q3 2024Q4 2025Q1

Budgeted unit sales 27,000 29,000 34,000 32,000 28,000

XYZ has also provided the following additional information

i. Each unit sells for $30

ii. XYZ sells to its customers on account. XYZ collects payments on 80% of sales during the quarter

that the sale is made, with the remaining 20% being received the following quarter.

iii. At the end of 2023 the accounts receivable balance was $225,000

iv. At the end of 2023 XYZ had 4,050 units of inventory held in finished goods inventory.

v. XYZ keeps an amount of finished goods inventory on hand so that the ending balance each

quarter is equal to 15% of budgeted sales for the following quarter.

Required:

1. Prepare the companys sales budget and schedule of expected cash collections

2. Prepare the companys production budget for the upcoming fiscal year