Waterways Continuing Problem 23 Waterways Corporation is preparing its budget for the coming year, 2017. The first step is to plan for the first...

Waterways Continuing Problem 23

Waterways Corporation is preparing its budget for the coming year, 2017. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the managers.

Sales

Unit sales for November 2016: 112,500

Unit sales for December 2016: 102,100

Expected unit sales for January 2017: 113,000

Expected unit sales for February 2017: 112,500

Expected unit sales for March 2017: 116,000

Expected unit sales for April 2017: 125,000

Expected unit sales for May 2017:137,500

Unit selling price: $12

Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2016, totaled $183,780.