Question

Franklin Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Franklin has budgeted sales as indicated in the following table. The company expects a 10 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 a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Franklin will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below. Required A Required B Complete the sales budget by filling in the missing amounts. (Round intermediate calculations and final answers to 2 decimal places.) February March Sales Cash sales Sales on account Total budgeted sales January $ 46,000 112,000 $ 158,000 < Required A Required B >

Answer 1

A
Sales	January	February	March
Cash sales	46000	50600	55660
Sales on account	112000	123200	135520
Total budgeted sales	158000	173800	191180
B
Sales revenue	522980	=158000+173800+191180
Workings:
	February
Cash sales	50600	=46000*1.10
Sales on account	123200	=112000*1.10
	March
Cash sales	55660	=50600*1.10
Sales on account	135520	=123200*1.10