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 $240,000 and to increase 5 percent per month in February and March. All sales are on account. Sutton 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. A. Prepare sales budget for the first quarter of 2015

B. Determine the amount of sales revenue Sutton will report on the first 2015 quaterly proforma income statement

c. Prepare a cash receipts schedule for the first quarter of 2015.

D determine the amount of accounts receivable as of March 31 2015

Student Name: Ana Galdamez Class: Managerial Accounting (Onlin Problem 07-17A SUTTON POINTERS CORPORATION a. Sales Budget Sales on Account b. January February March $ 240,000 $ 252,000 $ 264,600 $ Sales revenue for Quarter $ c. and d. Total 756,600 Correct! 756,600 Correct! SUTTON POINTERS CORPORATION Schedule of Cash Receipts Receipts from January Sales Receipts from January Sales Receipts from January Sales Receipts from February Sales Receipts from February Sales Receipts from February Sales Receipts from March Sales Receipts from March Sales Receipts from March Sales Total Accounts receivable March 31 $ January 240,000 February March 252,000 264,600 April May Given Data P07-17A: SUTTON POINTERS CORPORATION Expected sales in January Growth rates for February and March Accounts receivable collected: Month of sale Month following sale Second month following sale $ 240,000 5% 70% 20% 10% Student Name: Class: Problem 07-22A MULLIGAN FRUITS CORPORATION a. Sales Budget Sales in Next Year Peaches Oranges Total b. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total $ 168,000 $ 210,000 $ 336,000 $ 294,000 $ 1,008,000 440,000 495,000 627,000 418,000 1,980,000 $ 608,000 $ 705,000 $ 963,000 $ 712,000 $ 2,988,000 Correct! Correct! Correct! Correct! Correct! MULLIGAN FRUITS CORPORATION Budgeted Annual Income Statement Sales revenue Cost of goods sold Gross profit Selling and admin. expenses Net income c. $ 2,988,000 1,792,800 1,195,200 700,000 $ 495,200 Correct! MULLIGAN FRUITS CORPORATION Inventory Purchases Budget Peaches Sales Cost of goods sold Plus: desired ending inventory Inventory needed Less: beginning inventory Required purchases 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 168,000 $ 210,000 $ 336,000 $ 294,000 100,800 126,000 201,600 176,400 12,600 20,160 17,640 20,000 113,400 146,160 219,240 196,400 10,080 12,600 20,160 17,640 $ 103,320 $ 133,560 $ 199,080 $ 178,760 Correct! Correct! Correct! Correct! Oranges Sales Cost of goods sold Plus: desired ending inventory Inventory needed Less: beginning inventory Required purchases 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 440,000 $ 495,000 $ 627,000 $ 418,000 264,000 297,000 376,200 250,800 29,700 37,620 25,080 40,000 293,700 334,620 401,280 290,800 26,400 29,700 37,620 25,080 $ 267,300 $ 304,920 $ 363,660 $ 265,720 Correct! Correct! Correct! Correct! Given Data P07-22A: MULLIGAN FRUITS CORPORATION Expected annual sales growth rate: Peaches Oranges Sales in Current Year Peaches Oranges Total 5% 10% 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 160,000 $ 200,000 $ 320,000 $ 280,000 $ 400,000 450,000 570,000 380,000 $ 560,000 $ 650,000 $ 890,000 $ 660,000 $ Additional Information: Cost of goods sold - percentage of sales revenue Ending inventory - percentage of next period's cost of goods sold Part b. - Estimated selling and administrative expenses Part c. - Estimate of ending inventory for next year: Peaches Oranges 60% 10% $ 700,000 $ $ 20,000 40,000 Total 960,000 1,800,000 2,760,000