The marketing department of jessi corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st quarter 2nd quarter 3rd quarter 4th quarterbudgeted unit sales 11000 12000 14000 13000the selling price of the company’s product is $18.00 per unit. management expects to collect 65%of sales in the quarter in which the sales are made, 30% 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 $70,200.
the company expects to start the first quarter with 1,650 units in finished goods inventory. management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. the desired ending finished goods inventory for the fourth quarter is 1,850 units.
required: 1. calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. (hint: refer to schedule 1 for guidance.)
2. calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole. (hint: refer to schedule 1 for guidance.)
3. calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole. (hint: refer to schedule 2 for guidance.)

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event.inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded.required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)