Question

Adams Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Adams has budgeted sales as indicated in the following table. The company expects a 13 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Adams will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below Required A Required B Complete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimal places.) Sales Cash sales Sales on account Total budgeted sales January February March $ 33,000 111,000 144,000 < Required A Required B

Answer 1

	January	February	March
Cash sales	33000	37290	42137.70
Sales on account	111000	125430	141735.90
Total budgeted sales	144000	162720	183873.60
b
Amount of sales revenue=144000+162720+183873.60= $490593.60