Problem 14-17 Preparing a sales budget and schedule of cash receipts LO 14-2 Sut

Question

Problem 14-17 Preparing a sales budget and schedule of cash receipts LO 14-2 Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that sells laser pointers over the Internet. Sutton expects sales in January 2015 to total $210,000 and to increase 15 percent per month in February and March. All sales are on account. Sutton expects to collect 67 percent of accounts receivable in the month of sale, 22 percent in the month following Required a. Prepare a sales budget for the first quarter of 2015. Sales Budget January February March Sales on account $210,000 241,500 277,725 b. Determine the amount of sales revenue Sutton will report on the first 2015 quarterly pro forma income ales revenue729,225

Explanation / Answer

Amount of Accounts receivable as of March 2015 = Sales revenue - Cash receipts = $729,225-611,011 = $118,214

Schedule of Cash receipts Jan Feb Marc Total Receipts from Jan sales $140,700.00 $ 46,200.00 $ 23,100.00 $210,000.00 Receipts from Feb sales $             -   $161,805.00 $ 53,130.00 $214,935.00 Receipts from March sales $186,075.75 $186,075.75 Total cash receipts $140,700.00 $208,005.00 $262,305.75 $611,010.75

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---