Baird Company, which expects to start operations on January 1, 2018, will sell digital cameras in...

Baird Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Baird has budgeted sales as indicated in the following table. The company expects a 14 percent 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.

Required

Complete the sales budget by filling in the missing amounts.
Determine the amount of sales revenue Baird will report on its first quarter pro forma income statement.

Complete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimal places.)

Sales	January	February	March
Cash sales	$45,000
Sales on account	115,000
Total budgeted sales	$160,000

Determine the amount of sales revenue Baird will report on its first quarter pro forma income statement. (Round intermediate calculations and final answer to 2 decimal places.)

Sales revenue

Solutions

Expert Solution

1) Sales budget :

Particulars	January	February	March
Cash sales	$45,000	$51,300 (45000 x 114%)	$58,482 ($51,300 x 114%)
Credit sales	$115,000	$131,100 ($115,000 x 114%)	$149,454 ($131,100 x 114%)
Total sales	$160,000	$182,400	$207,936

the ratio of cash sales to sales on account will remain stable from January through March and sales are increasing 14% in February and march. so we can get next month sales (cash, credit and total) by just Adding 14% in the previous month.

2. sales revenue in first quarter in its first quarter pro forma income statement
= ($160,000 + $182,400 + $207,936)
= $550,336

ekkarill92 answered 1 year ago

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