Adams Pointers Corporation expects to begin operations on January 1, Year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Adams expects sales in January Year 1 to total $340,000 and to increase 20 percent per month in February and March. All sales are on account. Adams expects to collect 66 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 11 percent in the second month following the sale.

Required

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

2. Determine the amount of sales revenue Adams will report on the Year 1 first quarterly pro forma income statement.

3. Prepare a cash receipts schedule for the first quarter of Year 1.

4. Determine the amount of accounts receivable as of March 31, Year 1.

• Required A

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

	January	February	March	Total
Sales on account

• Required B

Determine the amount of sales revenue Adams will report on the year 1 first quarterly pro forma income statement.

	Sales revenue

• Required C

Prepare a cash receipts schedule for the first quarter of year 1. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

Schedule of Cash Receipts	January	February	March
Receipts from January sales
Receipts from February sales
Receipts from March sales
Total

• Required D

Determine the amount of accounts receivable as of March 31, year 1. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

Accounts receivable