Adams Company, which expects to start operations on January 1, 2018, will sell d

Question

Adams Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Adams has budgeted sales as indicated in the following table. The company expects a 13 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Adams will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below Required A Required B Complete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimal places.) Sales Cash sales Sales on account Total budgeted sales January February March $ 33,000 111,000 144,000

Explanation / Answer

January February March Cash sales 33000 37290 42137.70 Sales on account 111000 125430 141735.90 Total budgeted sales 144000 162720 183873.60 b Amount of sales revenue=144000+162720+183873.60= $490593.60

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