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 1st Quarter 2nd Quarter 3rd Quarter 12, 600 4th Quarter 13, 600 11,600 14,600 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 whóle. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 ......... .............. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. ...... ................... ............................ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total cash collections
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 1st Quarter 2nd Quarter 3rd Quarter 12, 600 4th Quarter 13, 600 11,600 14,600 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 whóle. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 ......... .............. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. ...... ................... ............................ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total cash collections
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on
account):
1st Quarter 2nd Quarter
11, 600
3rd Quarter
14, 600
4th Quarter
13, 600
Budgeted unit sales
12, 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 whóle.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year
Total cash collections
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