Adams Pointers Corporation expects to begin operations on January 1, 2019 ; it will operate as specialty sales company that sells laser pointers over the internet. Adams expects sales in January 2019 to total $300,000 and to increase 15 percent per month in February and March. All sales are on account . Adams expects to collect 69 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 9 percent in the second month following the sale.
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
a)
Sales Budget | January | February | March |
Sales on account | $300,000 | $345,000 | $396,750 |
Working | ($300,000 × 115%) | ($345,000 × 115%) |
_______________________________________________________________________
b)
Sales Revenue | |
January | $300,000 |
February | $345,000 |
March | $396,750 |
Total | $1,041,750 |
______________________________________________________________________
c)
Schedule cash receipts | January | February | March |
Receipts of Jan. sales | $207,000 | ||
($300,000 × 69%) | |||
Receipts of Feb. sales | $66,000 | ||
($300,000 × 22%) | |||
$238,050 | |||
($345,000 × 69%) | |||
Receipts of March sales | $27,000 | ||
($300,000 × 9%) | |||
$75,900 | |||
($345,000 × 22%) | |||
$273,757.50 | |||
($396,750 × 69%) | |||
Total | $207,000 | $304,050 | $376,657.50 |
________________________________________________________________________________
d)
Accounts receivable as on March 31: | Amount |
February sales receivable ($345,000 × 9%) | $31,050 |
March sales receivable ($396,750 × 31%) | $122,992.50 |
Total | $154,042.50 |
Adams Pointers Corporation expects to begin operations on January 1, 2019 ; it will operate as...
Rooney 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. Rooney expects sales in January 2019 to total $220,000 and to increase 10 percent per month in February and March. All sales are on account. Rooney expects to collect 69 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 9 percent in the second month...
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...
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...
Benson Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Benson expects sales in January year 1 to total $260,000 and to increase 15 percent per month in February and March. All sales are on account. Benson expects to collect 69 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 9 percent in the...
Finch 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. Finch expects sales in January 2019 to total $350,000 and to increase 15 percent per month in February and March. All sales are on account. Finch expects to collect 68 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 9 percent in the second month...
Solomon Pointers Corporation expects to begin operations on January 1, Year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Solomon expects sales in January Year 1 to total $360,000 and to increase 15 percent per month in February and March. All sales are on account. Solomon expects to collect 66 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 10 percent in the...
Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that sells laser pointers over the Internet. Sutton expects sales in January 2015 to total $370,000 and to increase 15 percent per month in February and March. All sales are on account. Sutton expects to collect 69 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 11 percent in the second month...
Walton Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Walton expects sales in January year 1 to total $340,000 and to increase 15 percent per month in February and March. All sales are on account. Walton expects to collect 65 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 13 percent in the...
Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that sells laser pointers over the Internet. Sutton expects sales in January 2015 to total $280,000 and to increase 10 percent per month in February and March. All sales are on account. Sutton expects to collect 66 percent of accounts receivable in the month of sale, 21 percent in the month following the sale, and 13 percent in the second month...
Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that sells laser pointers over the Internet. Sutton expects sales in January 2015 to total $350,000 and to increase 15 percent per month in February and March. All sales are on account. Sutton expects to collect 66 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 10 percent in the second month...