Problem: Camtech, which expects to start operations on January 1, 2008, will sell digital cameras in shopping malls. Camtech has budgeted sales as indicated in the following table. The company excerpts a 10 percent increase in sales per month for February and March. the ratio of each sales to sales on account will remain stable from January through March.
Sales, January, February, March
Cash sales $50,000
Sales on account $80,000
total budgeted sales $130,000
Q1. Complete the sales budget by filling in the missing amounts.
Q2. Determine the amount of sales revenue Camtech will report on its second quarter pro form a income statement.