Spalding Pointers Corporation expects to begin operations on January $1,$ year $1$; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January year $1$ to total $$120,000$ and to increase $5$ percent per month in February and March. All sales are on account. Spalding expects to collect $70$ percent of accounts receivable in the month of sale, $20$ percent in the month following the sale, and $10$ percent in the second month following the sale.

Required

Prepare a sales budget for the first quarter of year $1.$

Determine the amount of sales revenue Spalding will report on the year $1$ first quarterly pro forma income statement.

Prepare a cash receipts schedule for the first quarter of year $1.$

Determine the amount of accounts receivable as of March $31,$ year $1.$