Question attached in image. The marketing department of Graber Corporation has s

Question

Question attached in image.

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 S23.00 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 S64.000. The company expects to start the first quarter with 1.950 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 2.150 units. Required: Compute the company's total sales. (Omit the "S" sign in your response.) Complete the schedule of expected cash collections. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values. Do not round intermediate calculations.)

Explanation / Answer

1a. Computation of the company's total sales: Quarters 1 2 3 4 Total $299,000 276,000 253,000 276,000 1,104,000 1b. Computation of CASH collections: Quarters Particulars 1 2 3 4 Accounts receivable Beginning balance 64,000 1st Quarter sales 224,250 45,800 2nd Quarter sales 207,000 55,200 3rd quarter sales 189,750 50,600 4th quarter sales 207,000 5,520 Total cash collections 288,250 252,800 244,950 257,600 5,520 1c) Production budget Quarters 1 2 3 4 Expected unit sales 13,000 12,000 11,000 12,000 Add: Desired ending finished goods 1,800 1,650 1,800 0 Total required units 14,800 13,650 12,800 12,000 Less: beginning finished goods units 1,950 1,800 1,650 1,800 Required production units 12,850 11,850 11,150 10,200

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