50.1K

Verified Solution

Link Copied!

The marketIng department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year $($all sales are on

account$)$:

The selling price of the company's product is $$23$ 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 uncollectlble. The beginning balance of accounts

recelvable, all of which is expected to be collected in the first quarter, is $$73,000.$

The company expects to start the first quarter with $2,480$ 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 $2,680$ units.

Required:

Calculate the estlmated sales for each quarter of the fiscal year and for the year as a whole.

Calculate the expected cash collectlons for each quarter of the fiscal year and for the year as a whole.

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.

Answer & Explanation Solved by verified expert

See Answer