Man Body Company has budgeted sales as indicated in the following table. The com

Question

Man Body Company has budgeted sales as indicated in the following table. The company expect a 15 increase in cash sales and sales on account per month for February. What is the total budgeted sales for percert February? SALES JANUARY FEBRUARY PRO FORMA Cash Sales Sales on Account Total Budgeted Sales $60,000 90,000 $150,000 $ $322,500 b $172.500 c $159,000 d $300,000 10. For MaxiBody Company ProForma Income Statement, the total budgeted sales for January and February has: a. $322,500. b $172,500 s $159,000 d $300,000

Explanation / Answer

(9).

Answer is option (b). $172500

Explanation;

Cash sales for February will be $60000 + ($60000 * .15) = $69000

Sales on account for February will be $90000 + ($90000 * .15) = $103500

Thus total budgeted sales for February ($69000 + $103500) = $172500

(10).

Answer is option (b). $322500

Explanation;

Total sales of January and February will be calculated as follow;

Total budgeted sales of January and February;

($150000 + $172500) = $322500

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