Answer:
Perez Pointers Corporation
1. The amount of sales revenue that Perez will report on the Year 1 first quarterly pro forma income statement is:
= $280,000
2. Cash Receipts Schedule for the first quarter of Year 1:
January February March Quarter Total
Expected sales $280,000 $322,000 $370,300 $972,300
Cash Collection:
67% month of sale $187,600 $215,740 $248,101 $651,441
22% month following 61,600 70,840 132,440
11% second month 30,800 30,800
Total cash collection $187,600 $277,340 $349,741 $814,681
3. The amount of the Accounts Receivable balance as of March 31, Year 1
= $157,619.
Explanation:
a) Data and Calculations:
January February March Quarter Total
Expected sales $280,000 $322,000 $370,300 $972,300
Cash Collection:
67% month of sale $187,600 $215,740 $248,101 $651,441
22% month following 61,600 70,840 132,440
11% second month 30,800 30,800
Total cash collection $187,600 $277,340 $349,741 $814,681
Accounts receivable balance as of March 31, Year 1 = $157,619
