Question

Campbell Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a...

Campbell 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. Campbell expects sales in January 2019 to total $290,000 and to increase 15 percent per month in February and March. All sales are on account. Campbell expects to collect 69 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 8 percent in the second month following the sale.

  1. Prepare a sales budget for the first quarter of 2019.

  2. Determine the amount of sales revenue Campbell will report on the first 2019 quarterly pro forma income statement.

  3. Prepare a cash receipts schedule for the first quarter of 2019.

  4. Determine the amount of accounts receivable as of March 31, 2019.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

I HOPE IT'S USEFUL TO YOU IF YOU HAVE ANY DOUBT PLZ COMMENT GIVE ME UP-THUMB. THANKS.....

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Thornton Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a...
Thornton 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. Thornton expects sales in January 2019 to total $360,000 and to increase 15 percent per month in February and March. All sales are on account. Thornton expects to collect 68 percent of accounts receivable in the month of sale, 21 percent in the month following the sale, and 11 percent in the second month...
Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a...
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 $250,000 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...
Estlin Corporation sells mail-order computers. In December 2018, it has generated $300,000 of sales revenue; the...
Estlin Corporation sells mail-order computers. In December 2018, it has generated $300,000 of sales revenue; the company expects a 20-percent increase in sales in January and 10 percent in February. All sales are on account. Estlin normally collects 80 percent of accounts receivable in the month of sale and 20 percent in the next month. a. Prepare a sales budget for January and February 2019. b. Determine the amount of sales revenue Estlin would report on the bimonthly pro forma...
Vernon Company, which expects to start operations on January 1, year 2, will sell digital cameras...
Vernon Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Vernon 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 Complete the sales budget by filling in the missing amounts. Determine the amount of sales revenue Vernon will report...
The Westwood Cycle Company expects to start operations on July 1, 2020 and will sell bicycles...
The Westwood Cycle Company expects to start operations on July 1, 2020 and will sell bicycles out of its store that it recently leased in the town center. Westwood Cycle has budgeted sales for the month of July to be $12,000 of which 30 percent will be cash sales and 70 percent will be sales on account. Westwood Cycle expects a 15 percent increase in sales per month for August and September with the ratio of cash sales to sales...
Solomon Company is a retail company that specializes in selling outdoor camping equipment. The company is...
Solomon Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks: Required October sales are estimated to be $310,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to...
The Uli Antique Mall budgeted credit sales in the first quarter of 2018 to be as...
The Uli Antique Mall budgeted credit sales in the first quarter of 2018 to be as follows: January $199,000 February 211,000 March 226,000 Credit sales in December 2017 are expected to be $274,000. The company expects to collect 81 percent of a month’s sales in the month of sale and 19 percent in the following month. Estimate cash receipts for each month of the first quarter of 2018. Collection of credit sales January February March Collection of December sales $...
The following is the sales budget for Coore, Inc., for the first quarter of 2019: January...
The following is the sales budget for Coore, Inc., for the first quarter of 2019: January February March   Sales budget $142,000 $159,000 $174,000 Credit sales are collected as follows: 70 percent in the month of the sale 25 percent in the month after the sale 5 percent in the second month after the sale The accounts receivable balance at the end of the previous quarter was $70,150 ($61,200 of which was uncollected December sales). a. Compute the sales for November....
Axon Corporation, which has three divisions, is preparing its sales budget. Each division expects a different...
Axon Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 4 percent for Cummings Division, 2 percent for Springfield Division, and 5 percent for Douglas Division. Division First Quarter Second Quarter Third Quarter Fourth Quarter Cummings Division $ 75,000 ? ? ? Springfield Division   125,000 ? ? ? Douglas Division   100,000 ? ? ? Required Complete...
The budget director of Heather’s Florist has prepared the following sales budget. The company had $370,000...
The budget director of Heather’s Florist has prepared the following sales budget. The company had $370,000 in accounts receivable on July 1. Heather’s Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required Complete the schedule of cash receipts by filling in the missing amounts. July August September Sales Budget Cash sales $72,000 $68,000 $86,000 Sales on account 86,000 107,000 121,600 Total budgeted sales $158,000 $175,000 $207,600 Schedule of Cash Receipts Current cash...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT