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The question is about computation of sales budget for the preparation of master budget for profit planning.
Don's Game Store sells computer and other electronic games. The store has budgeted sales for January 2008 as indicated in the following table. The company expects an 8 percent increase in sales for the month of February and a 5 percent increase for March.
Sales
January
February
March
Cash sales
$20,000
?
Sales on account
40,000
Total budgeted sales
$60,000
Required:
A) Complete the sales budget by filling in the missing amounts. B) What is the amount of sales revenue the company will report on its pro forma income statement for the first quarter?
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