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The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.
The marketing department of Graber Corporation has submitted the following
The selling price of the company€™s product is $22.00 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 $66,000.
The company expects to start the first quarter with 3,200 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter€™s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 3,400 units.
Required:
1. Prepare the company€™s sales budget and schedule of expected cash collections.
2. Prepare the company€™s production budget for the upcoming fiscalyear.
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