Parliament Company, which expects to start operations on January 1, 2018, will s

Question

Parliament Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Parliament has budgeted sales as indicated in the following table. The company expects a 10 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Parliament will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below. Required ARequired B Complete the sales budget by filling in the missing amounts. Sales Cash sales Sales on account Total budgeted sales JanuaryFebruary March $ 50,000 120,000 $ 170,000

Explanation / Answer

a) Sales budget :

sales revenue in first quarter = (170000+187000+205700) = 562700

January February March Cash sales 50000 55000 60500 Credit sales 120000 132000 145200 Total sales 170000 187000 205700

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