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Zapata Inc. predicts the following sales forecast for the first quarter of 2020 and a planned cash collections schedule for sales on account: 60% will
Zapata Inc. predicts the following sales forecast for the first quarter of 2020 and a planned cash collections schedule for sales on account: 60% will be collected during the month of sale 40% will be collected in the month after the sale occurs The company's accounts receivable balance at December 31, 2019 was $48,000, which represents the uncollected portion of the sales on account in December. Sales Forecast for the first quarter of 2020 January February March Pro Forma Cash Sales $120,000 $160,000 $200,000 Sales on Account $180,000 $240,000 $300,000 Total Sales $300,000 $400,000 $500,000 Schedule of Cash Receipts Cash sales Collection of cash from: Current month's sales on account Prior month's sales on account Total budgeted cash receipts Required: (a) Complete the schedule of cash receipts using the template above. In the pro-forma column, complete the cells, which are shaded only. (b) Determine the amount of sales that the company should report on its pro-forma quarterly Income Statement for the First quarter of 2020./ (c) Determine the accounts receivable that the company should report on its pro-forma quarterly Balance Sheet as at March 31, 2020
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