Sutton pointers corporation expects to begin operations on


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 $390,000 and to increase 10 percent per month in February and March. All sales are on account. Sutton expects to collect 65 percent of accounts receivable in the month of sale, 22 percent in the month following the sale, and 13 percent in the second month following the sale.

Required

a. Prepare a sales budget for the first quarter of 2015.

b. Determine the amount of sales revenue Sutton will report on the first 2015 quarterly pro forma income statement.

c. Prepare a cash receipts schedule for the first quarter of 2015. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

d. Determine the amount of accounts receivable as of March 31, 2015. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

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Financial Accounting: Sutton pointers corporation expects to begin operations on
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