Campbell Pointers Corporation expects to begin operations on January 1, 2019; it

Question

Campbell Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Campbell expects sales in January 2019 to total $260,000 and to increase 15 percent per month in February and March. All sales are on account. Campbell expects to collect 68 percent of accounts receivable in the month of sale, 21 percent in the month following the sale, and 11 percent in the second month following the sale. Required a. Prepare a sales budget for the first quarter of 2019. b. Determine the amount of sales revenue Campbell will report on the first 2019 quarterly pro forma income statement c. Prepare a cash receipts schedule for the first quarter of 2019 d. Determine the amount of accounts receivable as of March 31, 2019. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of accounts receivable as of March 31, 2019. (Do not round intermediate calculations.) Accounts receivable K Required C Required D

Explanation / Answer

Sales Budget Jan Feb Mar Total Budgeted sales in $ 260000 299000 343850 902850 (260000+15%) (299000+15%) Total sales revenue to be reported in income statement is $ 902,850 Cash receipts Budget Jan Feb Mar Total Jan sales 176800 54600 28600 260000 Feb sales 203320 62790 266110 March Sales 233818 233818 Total cassh collections 176800 257920 325208 759928 Accounts receivable on Mar31: Feb sales (299000*11%) 32890 Mar sales (343850*32%) 110032 Total Accounts receivable 142922

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