1.Complete panel number 1 of the following sales budget, given an increase of 10% per month and calculate the sales number and A/R balance on pro forma financial statements.

Given credit sales are collected in 30 days after the sale.

Sales creditJanuary Feb.March

44,000

120,000

164,000

Sales number ______________

A/R balance_______________

2.Complete panel number 1 of an inventory purchases budget using the sales information in question oneand given the assumption that the COGS is 60% of sales and a $5000 desired ending inventory balance, assume no Beg. Inventory balance. Also, determine the COGS and the inventory balances on a pro forma statements.

Jan.Feb. March

COGS

+DEI

= inventory needed

-Beg. Inv.

= Purchases