Exercise 14-4 Preparing sales budgets with different assumptions Axon Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 4 percent for Cummings Division, 2 percent for Springfield Division, and 5 percent for Douglas Division. First Quarter Second Quarter Third Quarter Fourth Quarter Division Cummings Division $ 75,000 Springfield Division 125,000 Douglas Division 100,000 Required a. Complete the sales budget by filling in the missing amounts. (Round figures to the nearest dollar.) b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements. If cash collection happens as 25% of sales on cash; 50% collected in the month of the sale; 25% collected in the month following the sale, calculate the following: c. Total cash collections for Q2 Required a. Complete the sales budget by filling in the missing amounts. (Round figures to the nearest dollar.) b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements. If cash collection happens as 25% of sales on cash; 50% collected in the month of the sale; 25% collected in the month following the sale, calculate the following: c. Total cash collections for Q2 d. A/R for Q4 Exercise 14-4 1 Quarter 2nd Quarter 3rd Quarter 4th Quarter 75,000 Cummings Div. Springfield Div. Douglas Div. 125,000 100,000 Total 300,000 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total