The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are onaccount):1st Quarter11, 6002nd Quarter12,6003rd Quarter14, 6004th Quarter13, 600Budgeted unit salesThe selling price of the company's product is $15 per unit. Management expects to collect 65% of sales in the quarter in which thesales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accountsreceivable, 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 finishedgoods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory forthe 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 whóle.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole.1st Quarter 2nd Quarter 3rd Quarter4th QuarterYearRequired production in units

Sales budget: sales budget is a budget prepared by the company to estimate the expected sales of the…

Answered: Required: 1. Calculate the estimated…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Top executive officers of Rundle Company, a merchandising firm, are preparing the next year's budget. The controller has provide everyone with the current year's projected income statement. Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income Current Year $ 1,998,800 1,425,000 475,000 266,000 $ 209,000 Cost of goods sold is usually 75 percent of sales revenue, and selling and administrative expenses are usually 10 percent of sales a fixed cost of $76,000. The president has announced that the company's goal is to increase net income by 10 percent. Required The following items are independent of each other: a. Prepare a pro forma income statement. What percentage increase in sales would enable the company to reach its goal? b. The market may become stagnant next year, and the company does not expect an increase in sales revenue. The production manager believes that an improved production procedure can cut cost of goods sold by 1 percent. Prepare a…
Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April 210 May 140 June 150 July 200 August 160 Each candle costs $ 10. The ending inventory policy is 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $2,460. Required: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign.a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30.
Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income *Includes $28,000 of depreciation each month. April May June $ 600,000 $1,100,000 $ 560,000 420,000 770,000 392,000 180,000 330,000 168,000 111,000 48,000 159,000 105,000 46,000 64,800 44,000 169,800 108,600 90,000 $ 21,000 $ 160,200 $ 59,400 $ 48,000 July $460,000 322,000 138,000 67,000 41,600 b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10%…
The following is a schedule of the projected unit sales of Western Company, which manufactures casual wear. Each unit sells for $25. The company began the period with a beginning accounts receivable balance of $10,000. Choose the correct answer from the options provided. Budgeted unit sales Percentage of sales collected in the quarter of the sale Percentage of sales collected in the quarter after the sale. Quarter First Second Third Fourth 1,500 1,300 1,400 1,300 Knowledge Check 01 What is the amount of budgeted sales revenue for the fourth quarter? O $32,500 $33,750 O $35,000 $37,500 $8,125 O $8,750 O $9,375 O $28,125 Year 5,500 75% 25% Knowledge Check 02 What is the amount of cash that is expected to be collected during the second quarter as a result of sales made during the first quarter?
Compute the dollar amount of Direct Material "A" to be used in production during the year, given the following info: Budgeted Sales for the year = 640,000 units Estimated Beg. Inventory = 108,000 units Desired End. Inventory = 90,000 units The Quantities of Direct Materials expected to be used for each Unit of finished product are as follows: Material A = 0.5 lb. per unit @ $0.60 per lb. Material B 1.0 lb. per unit @ $1.70 per lb. Material C= 1.2 lb. per unit @ $1.00 per lb. O $186,600.00 $210,600.00 O$181,200.00 $240,000.00
Valley Trails is preparing the Cash Budget for the upcoming period, and is concerned about their ability to meet their financial obligations in the short term. Following is information relating to Valley’s financial performance: Beginning-of-period balances:Accounts Receivable: $135,000Accounts Payable: $67,500Accumulated Factory Depreciation: $720,000Cash: $33,750 Estimates for end-of-period balances:Accounts Receivable: $168,750Accounts Payable: $45,000Accumulated Factory Depreciation: $740,000 Budgeted activity levels for the period:Sales: $625,000Purchases of Direct Materials: $112,000Direct Labor Wages: $187,500Manufacturing Overhead: $62,500Selling and Administrative Expenses: $105,000 Except for purchases of direct materials, all expenses are paid as incurred. What is the budgeted ending cash balance for the period? Select one: a. None of these options are correct. b. $223,000 c. $191,750 d. $175,500 e. $155,500
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