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. (Do not round intermediate calculations. Round final answers to two decimal places.)
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Determine the amount of sales revenue Vernon will report on its first quarter pro forma income statement. (Do not round intermediate calculations. Round final answers to two decimal places.)
Sales |
January |
February |
March |
Cash sales |
$38,000 |
$42,940 |
$48,522 |
Sales on account |
$101,000 |
$114,130 |
$128,967 |
Total budgeted sales |
$139,000 |
$157,070 |
$177,489 |
--Working
Sales |
January |
February |
March |
Cash sales |
38000 |
=38000*157070/139000 |
=38000*177489/139000 |
Sales on account |
101000 |
=101000*157070/139000 |
=101000*177489/139000 |
Total budgeted sales |
=38000+101000 |
=139000+(139000*13%) |
=157070+(157070*13%) |
Sales Revenue to be reported = $
139000 + 157070 + 177489
= $ 473,559
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