The marketing department of Jessi Corporation has submitted

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): Budgeted unit sales 11,600 12,600 14,600 13,600 The selling price of the company\'s product is $15 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% 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 $71,400 The company expects to start the first quarter with 1,740 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 1,940 units. Required 1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. 3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. Complete this question by entering your answers in the tabs below. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 1st 2nd 3rd Quarter 4th Safari Prev 1 of 3 Next > 9

Solution

SALES BUDGET Q1 Q2 Q3 Q4 TOTAL Budgeted Sales units 11,600 12,600 14,600 13,600 52,400 Selling price per unit 15 15 15 15 15 Total Sales 174,000 189,000 219,000 204,000 786,000 EXPECTED CASH COLLECTIONS Q1 Q2 Q3 Q4 Total Beginning Accounts receivable 71,400 71400 Q1 sales 113,100 52200 165300 Q2 Sales 122850 56700 179550 Q3 sales 142,350 65,700 208050 Q4 sales 132,600 132600 Total Cash Collections 184,500 175,050 199,050 198,300 756,900 PRODUCTION BUDGET Q1 Q2 Q3 Q4 Year Budgeted Sales Units 11,600 12,600 14,600 13,600 52,400 Add: Desired Ending Finished inventory 1,890 2,190 2,040 1,940 1,940 Total Needs 13,490 14,790 16,640 15,540 54,340 Less: Beginning Finished Inventory 1,740 1,890 2,190 2,040 1,740 Required Production in units 11,750 12,900 14,450 13,500 52,600