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The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted unit sales First Quarter 16,000 Second

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The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted unit sales First Quarter 16,000 Second Quarter 15,000 Third Quarter Fourth Quarter 14,000 15,000 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 and 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-a. Compute the company's total sales. Total Sales $ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 352,000 $ 330,000 $ 308,000 $ 330,000 $1,320,000 1-b. Complete the schedule of expected cash collections. Graber Corporation Schedule of Expected Cash Collections 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Accounts receivable, beginning balance $ 130,390 $ 130,390 1st Quarter sales 330,000 330,000 2nd Quarter sales 3rd Quarter sales 4th Quarter sales Total cash collections 0 0 0 460,390 $ 0 $ 0 $ 0 $ 460,390 2. Prepare the company's production budget for the upcoming fiscal year. Graber Corporation Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales Total units needed 0 0 0 0 0 Required production 0 0 0 0 0

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