Bedimo Pointers Inc. expects to begin operations on January 1, 2007; it will operate as a specialty sales company that sells laser pointers over the Internet. Bedimo expects sales in January 2007 to total \($100,000\) and to increase 10 percent per month in February and March. All sales are on account. Bedimo expects to collect 60 percent of accounts receivable in the month of sale, 30 percent in the month following the sale, and 10 percent in the second month following the sale.

Required

a. Prepare a sales budget for the first quarter of 2007.

b. Determine the amount of sales revenue Bedimo will report on the first 2007 quarterly pro forma income statement.

c. Prepare a cash receipts schedule for the first quarter of 2007.

d. Determine the amount of accounts receivable as of March 31, 2007.