please only answer if ur 100% sure of the answer. 1. The marketing department of
ID: 2400156 • Letter: P
Question
please only answer if ur 100% sure of the answer.
1. The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year First Quarter Second Quarter Third Quarter Fourth Quarter Budgeted unit sales 17,000 16,000 15,000 16,000 The selling price of the company's product is $30.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made and 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 $76,000 The company expects to start the first quarter with 4,200 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 10% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 4,400 units Required. 1-a. Compute the company's total sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total Sales 1-b. Complete the schedule of expected cash collections Graber Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collectionsExplanation / Answer
1-a.
Sales Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Budgeted unit sales
17,000
16,000
15,000
16,000
64,000
x Selling price per unit
$30
$30
$30
$30
$30
Total sales
$ 510,000
$ 480,000
$ 450,000
$ 480,000
$1,920,000
1-b.
Graber Corporation
Schedule of Expected Cash Collection
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Account receivable, beginning balance
$76,000
0
0
0
$76,000
1st Quarter sales
$ 382,500
$ 102,000
0
0
$ 484,500
2nd Quarter sales
0
$ 360,000
$ 96,000
0
$ 456,000
3rd Quarter sales
0
0
$ 337,500
$ 90,000
$ 427,500
4th Quarter sales
0
0
0
$ 360,000
$ 360,000
Total cash collection
$458,500
$462,000
$433,500
$450,000
$1,804,000
2.
Graber Corporation
Production Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Budgeted unit sales
17,000
16,000
15,000
16,000
64,000
Add: Desired ending inventory
1,600
1,500
1,600
4,400
4,400
Total unit needed
18,600
17,500
16,600
20,400
68,400
Less: Beginning inventory
4,200
1,600
1,500
1,600
4,200
Required production
14,400
15,900
15,100
18,800
64,200
Sales Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
Budgeted unit sales
17,000
16,000
15,000
16,000
64,000
x Selling price per unit
$30
$30
$30
$30
$30
Total sales
$ 510,000
$ 480,000
$ 450,000
$ 480,000
$1,920,000
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