5· value: 10.00 points The marketing department of Jess Corporaton has subrmited

Question

5· value: 10.00 points The marketing department of Jess Corporaton has subrmitedthe follwing sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 11,100 12,100 14,100 13,100 The selling pric the quarter in which the sales are made, 20% in the following quarter and 5% of sales are expected to be uncollectible. The be first quarter, is $70,4 e of the company's product is $10 per unit Management expects to collect 75% of sales in g balance of accounts receivable, all of which is expected to be collected in the inventory. Management The company expects to start the first quarter with 1,665 units in finished desires an ending finished goods inventory in each quarter equal to 15% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,865 units

Explanation / Answer

working -

1-(b) schdule of cash collection -

Note- 5% are uncollectible collections assume wite off every year at the end.

beginning accounts receivable includes 20% of net sales of previous quarter.

2. Prodcution budget -

Please comment in case of further clarification required.

Bedgeted units sales 11100 12100 14100 13100 Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter sales 111000 121000 141000 131000 1st quarter 70400 cash collection during the month of sale 75% of sale 83250 90750 105750 98250 cash collection following the month of sale 20% of sale 27750 30250 35250

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