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ankoles [38]
3 years ago
7

Adams Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sel

ls laser pointers over the Internet. Adams expects sales in January 2019 to total $340,000 and to increase 15 percent per month in February and March. All sales are on account. Adams expects to collect 66 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 12 percent in the second month following the sale.
Required:
A. Prepare a sales budget for the first quarter of 2019.
B. Determine the amount of sales revenue Adams will report on the first 2019 quarterly pro forma income statement.
C. Prepare a cash receipts schedule for the first quarter of 2019.
D. Determine the amount of accounts receivable as of March 31, 2019.
Business
1 answer:
Andrej [43]3 years ago
7 0

Answer:

a) The Sales Budget for the 2019 first quarter will be:

January - $340,000

February - $391,000 (340,000 x 1.15)

March - $449,650 (391,000 x 1.15)

b) The amount of sales revenue to be reported for the first 2019 quarter is $1,180,650, i.e. the total of sales from January to March.  This equals $1,180,650 (340,000 + 391,000 + 449,650).

c) The cash receipts schedule for the first quarter of 2019 will look like this:

January - 66% of $340,000 = $224,400.

February - 66% of $391,000 + 22% of $340,000 = $332,860.

March - 66% of $449,650 + 22% of $391,000 + 12% of $340,000 = $373,589.

Total cash receipts for the first quarter is $930,849 (224,400 + 332,860 + 373,589)

d) The amount of accounts receivable as of March 31, 2019 is $249,801 (the difference between total quarter sales of $1,180,650 and total quarter cash receipts of $930,849)

Explanation:

A Sales Budget is prepared to determine the sales outlook given certain units of sales at given price units based on prevailing business environment.  It is an educated guess, like all estimates, to value the outcome of a company's sales efforts in the future.

The sales budget determines the revenue to be anticipated and reported.  It is also the basis for cash receipts and the balance of the accounts receivable.

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8 0
1 year ago
he following is from the 2021 annual report of Kaufman Chemicals, Inc.: Statements of Comprehensive Income Years Ended December
o-na [289]

Answer: The answer is given below

Explanation:

An annual report is a report that is comprehensive about the activities of a company in the previous year. The aim of a company publishing its annual report is to give the shareholders and every other interested person information about activities of the company and its financial performance.

We are told that Kaufman calculated the $83 million accumulated other comprehensive income in 2021. This was calculated as the accumulated other comprehensive income in 2020 plus the change in the net unrealized gains on the AFS investments, the net of tax of $12 in 2021 plus the other net income of 2021. This can be represented mathematically as:

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8 0
3 years ago
Under the terms of the Treaty of Guadalupe Hidalgo, the United States Select one: a. officially acquired only Texas. b. gave up
kvasek [131]

Answer:

e. agreed to pay millions to Mexico.

Explanation:

The Treaty of Guadalupe Hidalgo wan on 2 February 1848 between the US and the Mexican Republic. The official title of the treaty is the Treaty of Peace, Friendship, Limits and Settlement between the US and Mexico.

The major purpose of signing the Treaty was to bring an end to the Mexican–American War that lasted betweem 1846 and 1848). Mexico sought to end the war when its army was defeated and the its capital fell. The treaty was effective starting from 4 July 1848.

The provisions of the include: the US should pay US$15 million to Mexico; to pay up to US$5 million to the citizens of the US that had claims against Mexico; the Rio Grande was given to the US to serve as a boundary for Texas; it also gave California including expanse areas like half of New Mexico, Colorado, Utah and Navada.

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4 0
3 years ago
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Solnce55 [7]
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3 years ago
Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 an
o-na [289]

Answer:

a) Stockholders' equity  = $411,690

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Explanation:

Accounting equation is defined as Assets = Liabilities + Equity.

a) If t the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310, the Stockholders' equity as of December 31 of the current year would be determined as follows:

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Stockholders' equity  = $411,690

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$716,040 = $238,110 + Equity

Stockholders' equity  = $477,930

8 0
3 years ago
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