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Najimi Enterprises recently began selling on the internet. Internet sales for the fourth quarter of Year 1 totaled $649,000. The company's internet sales are expected
Najimi Enterprises recently began selling on the internet. Internet sales for the fourth quarter of Year 1 totaled $649,000. The company's internet sales are expected to grow at a rate of 20% per quarter. All sales are made on account. The company's collection. experience is that 70% of accounts receivable will be collected in the quarter of sale and 30% in the next quarter. The balance in accounts receivable at the end of December Year 1 was $173,000. Required: a. Prepare a sales budget for internet sales for the four quarters of Year 2; include a total column that shows total budgeted internet sales for the year. b. Compute the accounts receivable balance as of the end of Year 2. c. Prepare a cash receipts schedule for all four quarters of Year 2 and the year as a whole
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