preparing a sale budget; Camtech , which expects to start operations on Jna1,200
ID: 2372849 • Letter: P
Question
preparing a sale budget;
Camtech , which expects to start operations on Jna1,2008 will sell digital cameras in shopping malls. Camtech has budgeted sales as indicated in the following table. the company expects a 10 percent increase in sales per month for February and march. the ratio of cash sales on account will remain stable from January through march.
fill out the blanks:
Sales januray Februry march
cash sales 50,000 ------- --------
sales on account 80,000 --------- ----------
total budgeted sales 130,000 ---------- --------
B) Sales revenue for Camtech's first quarter pro forma income statement will be reported at -----
Explanation / Answer
Sales January February march
cash sales 50,000 50,000 50,000
sales on account 80,000 88,000 96,800
total budgeted sales 130,000 138000 146,800
Working:
80000*10% = 8000
So Feb credit sales is 80000 + 8000 = 88000
88000*10% = 8800
So Mar credit sales is 88000 + 8800 = 96800
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