Jordan Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Jordan has budgeted sales as indicated in the following table. The company expects a 12 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 Jordan will report on its first quarter pro forma income statement. Required A Required B Complete the sales budget by filling in the missing amounts. (Do not round intermediate calculations. Round final answers to two decimal places.) a. Sales January February March Cash sales $43,000 Sales on account 107,000 Total budgeted sales $150,000 $0.00 $0.00 b. Determine the amount of sales revenue Jordan will report on its first quarter pro forma income statement. (Do not round intermediate calculations. Round final answers to two decimal places.) sales revenue = ?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Jordan Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Jordan has budgeted sales as indicated in the following table. The company expects a 12 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 Jordan will report on its first quarter pro forma income statement.
- Required A
- Required B
Complete the sales budget by filling in the missing amounts. (Do not round intermediate calculations. Round final answers to two decimal places.)
a.
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b.
Determine the amount of sales revenue Jordan will report on its first quarter pro forma income statement. (Do not round intermediate calculations. Round final answers to two decimal places.)
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