The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.

Question:

The marketing department of Graber has submitted the following sales forecast for the upcoming fiscal year.

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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...