Answered step by step
Verified Expert Solution
Question
1 Approved Answer
mainly just need accounts recievable Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that
mainly just need accounts recievable
Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that sells laser pointers over the Internet. Sutton expects sales in January 2015 to total $260,000 and to increase 15 percent per month in February and March. All sales are on account. Sutton expects to collect 67 percent of accounts receivable in the month of sale, 25 percent in the month following the sale, and 8 percent in the second month following the sale. Required a. Prepare a sales budget for the first quarter of 2015. Sales Budget Sales on account January February $ 260,000 $ 299,000 $ March 343,850 b. Determine the amount of sales revenue Sutton will report on the first 2015 quarterly pro forma income statement. Solos revenue 902,850 c. Prepare a cash receipts schedule for we first quarter of 2015. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) March Schedule of Cash Receipts Receipts from January sales Receipts from February sales Receipts from March sales January February $ 174,200 $ 65,000 $ 0 200,330 20,800 0 74,750 230,380 325,930 Total $ 174,200 $ 265,330 $ d. Determine the amount of accounts receivable as of March 31, 2015. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Accounts receivable Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started