Question

Problem 14-17 Preparing a sales budget and schedule of cash receipts LO 14-2 Benson 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. Benson expects sales in January 2019 to total $290,000 and to increase 20 percent per month in February and March. All sales are on account. Benson expects to collect 66 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 14 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 Benson 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.

Answer 1

Answer:

Total collected during the quarter $ 864,896

jan       $ 191,400

Feb     $ 287,680

March $ 385,816

Explanation:

We sovle for the amount colelcted on each period according to the budgeted amount in the sales department

$\left[\begin{array}{ccccc}& January& February& March& Quarter Total\\\\ Sales&290,000&348,000&417,600&1,055,600\\\\\\ Current Month&191,400&229,680&275,616&696,696\\ Previous&&58,000&69,600&127,00\\ two months &&&40,600&40,600\\ Total&191,400& 287,680&385,816&864,896\\\end{array}\right]$