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The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. Budgeted unit sales: 1st Quarter: 16,000 2nd Quarter: 15,000 3rd Quarter:14,000 4th Quarter: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, 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.
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