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XYZ Corporation is preparing a master budget for 2018. Sales for the year are expected to total 1,000,000 units. Quarterly sales in units are 20%,25%,30%,

XYZ Corporation is preparing a master budget for 2018. Sales for the year are expected to total 1,000,000 units. Quarterly sales in units are 20%,25%,30%, and 25% respectively. The sales price is expected to be $50 per unit for the first 3 quarters and $55 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales volume for the first quarter of 2017. Cash collections from sales are 60% in the quarter of sale, 30% in the following quarter and 8% in the second quarter after sale. For production purposes management desires to maintain ending finished goods inventories at 25% of the next quarters budgeted sales volume. Beginning finished goods on Jan 1 2018 are 60,000 units. For production purposes two pounds of raw material are required for each finished product. Management targets ending inventory of materials equal to 20% of next period’s production needs of finished goods Beginning materials inventory on January 1, 2018 was 10,000 pounds. Prepare A.cash inflows schedule for the third quarter 2018 B.materials purchase budget in pounds for the first quarter 2018

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