Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please correct answer for part c Thornton Pointers Corporation expects to begin operations on January 1, 2019; It will operate as a specialty sales company

please correct answer for part c image text in transcribed
image text in transcribed
image text in transcribed
Thornton Pointers Corporation expects to begin operations on January 1, 2019; It will operate as a specialty sales company that sells laser pointers over the Internet. Thornton expects sales in January 2019 to total $210,000 and to increase 15 percent per month in February and March. All sales are on account. Thornton expects to collect 68 percent of accounts receivable in the month of sale, 25 percent in the month following the sale, and 7 percent in the second month following the sale. Required a. Prepare a sales budget for the first quarter of 2019. b. Determine the amount of sales revenue Thornton will report on the first 2019 quarterly pro forma income statement c. Prepare a cash receipts schedule for the first quarter of 2019. d. Determine the amount of accounts receivable as of March 31, 2019. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare a sales budget for the first quarter of 2019. Sales Budget Sales on account January February $ 210,000 $ 241,500 March 277,725 Required B > MA Thornton Pointers Corporation expects to begin operations on January 1, 2019; It will operate as a specially sales company that sells laser pointers over the Internet. Thornton expects sales in January 2019 to total $210,000 and to increase 15 percent per month in February and March. All sales are on account. Thornton expects to collect 68 percent of accounts receivable in the month of sale, 25 percent in the month following the sale, and 7 percent in the second month following the sale, Required a. Prepare a sales budget for the first quarter of 2019. b. Determine the amount of sales revenue Thornton will report on the first 2019 quarterly pro forma income statement. c. Prepare a cash receipts schedule for the first quarter of 2019. d. Determine the amount of accounts receivable as of March 31, 2019. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of sales revenue Thornton will report on the first 2019 quarterly pro forma income statement. Sales revenue $ 729.225 a. Prepare a sales budget for the first quarter of 2019. b. Determine the amount of sales revenue Thornton will report on the first 2019 quarterly pro forma Income stateme c. Prepare a cash receipts schedule for the first quarter of 2019. d. Determine the amount of accounts receivable as of March 31, 2019. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare a cash receipts schedule for the first quarter of 2019. (Do not round Intermediate calculations.) January February March $ $ 142,800 164.220 $ 188.853 Schedule of Cash Receipts Receipts from January sales Receipts from February sales Receipts from March sales Total 52,500 60,375 14,700 $ 142.800 $ 216,720 $ 263,928

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions