Check Your Work Microsoft Edge o.mheducation.com The marketing department of Gra

Question

Check Your Work Microsoft Edge o.mheducation.com The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales The selling price of the company's product is $22.00 per unit. Management expects to collect 75% of sales d 5% be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is S66,000 The company expects to start the first quarter with 3,200 units in finished goods inventory. Management 20%. sales. The desired ending finished goods inventory for the fourth quarter is 3,400 units Required 1a. Compute the company's total sales. (omit the "S" sign in your response.) 2nd Quarter 3rd Quarter 4th Quarter Year 1st Quarter Total sales lb. 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 "S" sign in your Schedule of Expected Cash Collections 2nd Quarter Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 3rd Quarter sales 4th Q Total cash collections 2. Prepare the company's production budget for the upcoming fiscal year. (Input all amounts as positive values. Graber Corporation 1st Quarter 2nd Quarter Budgeted unit sales V (Click to select) V (Click to select) Total units needed (Click to select) V: lick to select Required production Year 4/4/20

Explanation / Answer

1a.

1b.

Remember that collections in the quarter of sales is 75%, therefore for the first quarter $352,000 × 75% = $264,000. In the quarter following the sale, collections are expected to be 30%, therefore $352,000 × 20% = $70,400. The rest of the calculations are done the same way.

2.

Graber Corporation Sales Budget Quarter 1 2 3 4 Total Budgeted Unit Sales 16,000 15,000 14,000 15,000        60,000 Selling Price per Unit $ 22 22 22 22 22 Total Sales $ $352,000 $330,000 $308,000 $330,000 $1,320,000

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