Solomon 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. Solomon expects sales in January 2019 to total $360,000 and to increase 15 percent per month in February and March. All sales are on account. Solomon expects to collect 70 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 8 percent in the second month following the sale.

Required

1. Prepare a sales budget for the first quarter of 2019.

   Sales Budget	January	February	March
   Sales on account

2. Determine the amount of sales revenue Solomon will report on the first 2019 quarterly pro forma income statement. Sales Revenue ______

3. Prepare a cash receipts schedule for the first quarter of 2019.

   Schedule of Cash Receipts	January	February	March
   Receipts from January sales
   Receipts from February sales
   Receipts from March sales
   Total

4. Determine the amount of accounts receivable as of March 31, 2019. Accounts Receivable ______