Question

Question 1:

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:

1. 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:

1. Prepare a schedule of expected cash collections for the year.

Answer 1

The answer has been presented in the supporting sheet.