Green Company shows the following estimates for unit sales for 2017: Q1 Q2 Q3 Q4 Year Units
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Question:
Green Company shows the following estimates for unit sales for 2017:
Q1 | Q2 | Q3 | Q4 | Year | |
Units sold | 1,000 | 1,200 | 1,250 | 2,100 | 5,550 |
The company expects to sell its goods for $12 per unit.
Required:
Prepare a sales budget for the year.
Additional information
The company expects to collect 90% of sales in the quarter of the sale, and 8% in the quarter following the sale. 2% of sales are expected to be uncollectible. The company’s beginning accounts receivable was $900, all of which was expected to be collected in the first quarter.
Required:
Prepare a schedule of expected cash collections for the year.
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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