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Chapter $8$: $($Algo$)$ Applying Excel $[$LO$8-2,$ LO$8-3,$ L$08-4]$

the Chapter $8$ Form worksheet is to be used to create your own worksheet version of the Review Problem in the text

Chapter $8$: $($Algo$)$ Applying Excel: Exercise $($Part $2$ of $2)$

The company $2$: ias just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling

price from $& to $$7.$ The marketing manager would like to use the following projections in the budget

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$\backslash$table$[[,$A$,,$B$,$c$,$D$,E,$F$,$G$],[1,$Chapter $8$: Applying Excel,,,,,,,$],[2,,,,,,,,],[3,$Data,,,,$-,,$Year $3$ Quarter$],[4,,,1,2,3,4,1,2],[5,$Budgeted unit sales,,$45,000,65,000,115,000,70,0005,80,000,100,000],[6,,,,,,,,],[7,-$ Selling price per unit,$$,7,$per unit,,,,$],[8,-$ Accounts receivable, beginning balance,s$,65,000,,,,,],[9,-$ Sales collected in the quarter sales are made,,$75\%,,,,,],[10,-$ Sales collected in the quarter after sales are made,,$25\%,,,,,],[11,$Desired ending finished goods inventory is$,,30\%,$of the budgeted unit sales of the next quarter$],[12,-$ Finished goods inventory, beginning,,$12,000,$units,,,,$],[13,-$ Raw materials required to produce one unit,,$5,$pounds,,,,$],[14,-$ Desired ending inventory of raw materials is$,,10\%,$of the next quarter's production needs$],[15,$Raw materials inventory, beginning,,$23\mathrm{.}000,$pounds,,,,$],[16,-$ Raw material costs,$$,0\mathrm{.}80,$per pound,,,,$],[17,$Raw materials purchases are paid,,$60\%,$in the quarter the purchases are made$],[18,$and,,$40\%,$in the quarter following purchase$],[19,-$ Accounts payable for raw materials, beginning balance,$$,81\mathrm{.}500,,,,,]]$

a$.$ What are the total expected cash collections for the year under this revised, budget?

$5$

Expected cash collections for the year

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b$.$ What is the total required production for the year under this revised budget?

Total required production for the year

c$.$ What is the total cost of raw materials to be purchased for the year under this revised budget?

Total cost of raw materials to be purchased for the yea

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d$.$ What are the total expected cash disbursements for raw materials for the year under this revised budget?

Total expected cash disbursements for raw materials for the year

e$.$ After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than $90,000$ units in any one quarter. Is this a potential problem?