Prepare a cash receipts schedule for the first quarter

Assignment Help Accounting Basics

Reference no: EM131988340

Problem

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 70 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 7 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.

d. Determine the amount of accounts receivable as of March 31, 2015.

Reference no: EM131988340

Questions Cloud

Prescientific idea of a balance of nature : Discuss what a stable system is and how this idea relates to the prescientific idea of a balance of nature.

Humans and have an impact on the environment : Which biome can impact humans and have an impact on the environment. What will happen if there is a shift in human behavior?

What type of blood does the purple hair female have : What type of blood does the purple hair female have? How do you know based on the clumping of the cells in the tubes?

Prepare a cash receipts schedule for the first quarter : Prepare a cash receipts schedule for the first quarter of 2015. Determine the amount of accounts receivable as of March 31, 2015.

Serum digoxin level from morning and notes : What should the nurse determine about this digoxin level? 1. Low 2. Extremely toxic 3. Within the therapeutic range 4. just above the high end

Identify the key contributors to the policy : Identify the key contributors to the policy. What evidence can you find that interests of all stakeholders are reflected in the policy?

Prepare the employers journal entry to record payroll taxes : Susan Braun's regular hourly wage rate is $18. Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes.

Actively dividing culture of the bacteria e : Supposed you are provided with an actively dividing culture of the bacteria E. coli and you add a radioactive thymine to its environment.

User Account

All Pages