Everything is right but I can\'t figure out D. (The answer is not 118,214) Probl

Question

Everything is right but I can't figure out D. (The answer is not 118,214)

Problem 14-17 Preparing a sales budget and schedule of cash receipts LO 14-2 Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that sells laser pointers over the Internet. Sutton expects sales in January 2015 to total $210,000 and to increase 15 percent per month in February and March. All sales are on account. Sutton expects to collect 67 percent of accounts receivable in the month of sale, 22 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 2015. Sales Budget Sales on account 210,000 $ 241,500 January February March 277,725 b. Determine the amount of sales revenue Sutton will report on the first 2015 quarterly pro forma income statement. Sales revenue729,225 729.225

Explanation / Answer

Receiveble from february sales 241,500-161,805-53,130 = 26,565 Receiveble from march sales 277,725-186,076 = 91,649 Total Accounts Receiveble                                                 1,18,214

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