Wace Corporation sells mail-order computers. In December 2014, it has generated $600,000 of sales revenue; the company

Question:

Wace sells mail-order computers. In December 2014, it has generated $600,000 of sales revenue; the company expects a 20 percent increase in sales in January and 10 percent in February. All sales are on account. Wace normally collects 80 percent of in the month of sale and 20 percent in the next month.

Required
a. Prepare a sales budget for January and February 2015.
b. Determine the amount of sales revenue Wace would report on the bimonthly pro forma income statement for January and February 2015.
c. Prepare a cash receipts schedule for January and February 2015.
d. Determine the amount of as of February 28, 2015.

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