The marketing department of Graber Corporation has submitted the following sales

Question

The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. The selling price of the company's product is $26.00 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 $65,000. The company expects to start the first quarter with 2,550 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 2,750 units. Required: Compute the company's total sales. Complete the schedule of expected cash collections. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values. Do not round intermediate calculations.)

Explanation / Answer

2550*95/100=2422.5

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