Exercise 14-2 Preparing a sales budget LO 14-1 Sycamore Company, which expects to start operations on January 1, 2014, will sell digital cam- eras in shopping malls. Sycamore has budgeted sales as indicated in the following table. The company expects a 10 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. Sales January February March Cash sales $ 60,000 Sales on account 140,000 Total budgeted sales $200,000 Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Sycamore will report on its first quarter pro forma income statement. Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Natalia's Florist has prepared the following sales budget. The company had $100,000 in accounts receivable on July 1. Natalia's Florist normally collects 100 percent of accounts receivable in the month following the month of sale July August September Sales Budget Cash sales $ 80,000 $ 85,000 $ 90,000 Sales on account 90,000 108,000 129,600 Total budgeted sales $170,000 $193,000 $219,000 Schedule of Cash Receipts Current cash sales Plus: Collections from accounts receivable Total budgeted collections $180,000 $175,000 $198,000 Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet