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artcher [175]
3 years ago
9

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

sells laser pointers over the Internet. Spalding expects sales in January 2019 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of 2019. Determine the amount of sales revenue Spalding will report on the first 2019 quarterly pro forma income statement. Prepare a cash receipts schedule for the first quarter of 2019. Determine the amount of accounts receivable as of March 31, 2019.
Business
1 answer:
aivan3 [116]3 years ago
8 0

<u>Solution and Explanation:</u>

a) <u>The Sales budget </u>

                             January   February                                 March

Sales revenue 120000          126000                               132300  

                                         (120000 multiply with 1.05)  (126000 multiply 1.05)  

b) The Sales revenue = 120000 plus 126000 plus 132300 = 378300

<u>c) The Schedule of the Cash receipt </u>

                                                           January February     March

Receipt from January Sales                     84000 24000 12000

Receipt from February Sales                           88200 25200

Receipt from March Sales                                             92610

Total                                                        84000 112200 129810

d) The Account receivable is c = =(126000 * 10 \%+132300 * 30 \%) = 52290

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