Final answer:
This question involves business concepts of budgeting, sales collections, and inventory management, requiring calculations based on the provided sales data and financial metrics.
Step-by-step explanation:
The question revolves around budgeted sales projections, sales collections, and inventory management, which falls under the subject area of Business, specifically financial management and accounting. To address this student question, one would calculate the sales revenue based on the provided budgeted sales units and selling price. Additionally, collections on sales are considered at different percentages in the current and next quarter, as well as factoring in uncollectible sales and considering previous year outstanding accounts receivable (A/R) and inventory levels.
To calculate the desired ending inventory for the next quarter, we would apply the 7.95% desired ending inventory rate to the next quarter's budgeted sales. This approach uses concepts such as receivables management and inventory forecasting which are important in ensuring that the business has sufficient cash flow and inventory to meet its needs. These are foundational concepts within a college-level Business curriculum.