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The Colson Company Has Budgeted Sales for the Year as Follows

question 67

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The Colson Company has budgeted sales for the year as follows:
 Quarter 1234 Sales in units 12,00014,00018,00016,000\begin{array} { | l | c | c | c | c | } \hline \text { Quarter } & \mathbf { 1 } & \mathbf { 2 } & \mathbf { 3 } & \mathbf { 4 } \\\hline \text { Sales in units } & 12,000 & 14,000 & 18,000 & 16,000 \\\hline\end{array} The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units.The finished goods inventory at the start of the year is 3,000 units.Scheduled production for the second quarter is (in units) :

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Definitions:

Capital Expenditures Budget

A budget that plans for investments in long-term assets like equipment, buildings, and machinery essential for the business's operations and growth.

Operating Budgets

Financial plans for the day-to-day activities of a business, outlining expected revenues and expenses.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to assess liquidity and manage cash efficiently.

Capital Expenditures Budget

A budget that outlines planned investments in fixed assets, such as machinery, equipment, or buildings, essential for long-term business operations.

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