Camtech, which expects to start operations on 1-1-2008, will sell digital cameras in shopping malls. Camtech has budgeted sales as indicated in the following table. The company expects a 10% increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.
Sales JAN FEB MAR
cash sales $50,000 ? ?
sales on account 80,000 ? ?
total budgeted sales $130,000 ? ?
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue Camtech will report on its second quarter pro forma income statement.