Exercise 14-2 Preparing a sales budget 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 Cash sales Sales on account Total budgeted sales January $ 60,000 140,000 $200,000 February ~~/al March |0|00 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. LO 14-1

Exercise 14-2 Preparing a sales budget Sycamore Company, which expects to start operations on January 1, 2014, will sell digital cameras 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. 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