Chapter 8: Applying Excel Data Year 2 Quarter Year 3 Quarter 1 2 4 1 2 40,000 60,000 100,000 50,000 70,000 80,000 Budgeted unit sales Selling price per unit 8 per unit Accounts receivable, beginning balance $65,000 Sales collected in the quarter sales are made 75% Sales collected in the quarter after sales are made 25% 30% of the budgeted unit sales of the next quarter 1 Desired ending finished goods inventory is 2 Finished goods inventory, beginning 12,000 units 3 Raw materials required to produce one unit 5 pounds Desired ending inventory of raw materials is 10% of the next quarter's production needs 5 Raw materials inventory, beginning 23,000 pounds 5 Raw material costs $0.80 per pound 60% in the quarter the purchases are made Raw materials purchases are paid and 40% in the quarter following purchase unts payable for raw materials, beginning balance s81,500 Enter a formula into each of the cells marked with a below 2 Review Problem: Budget Schedules Construct the sales budget Year 2 Quarter Year 3 Quarter 1 2 4 1 2 Budgeted unit sales 5 Selling price per unit Total sales Construct the schedule of expected cash collections Year 2 Quarter 1 2 4 Year 2 Accounts receivable, beginning balance 3 First-quarter sales 4 Second-quarter sales Third-quarter sales Fourth-quarter sales 5 ?I 7 Total cash collections