**Bright Minds Toy Company Sales Budget Analysis**Bright Minds Toy Company has prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are outlined below:| Sales Budget | April | May | June ||------------------|--------|--------|--------|| Cash Sales | 50,000 | 51,000 | 75,000 || Sales on Account | 390,000| 448,000| 425,000|| **Total Sales** | 440,000| 499,000| 500,000|**Collection Strategy** Bright Minds anticipates collecting 70% of the sales on account during the month of sale, 20% in the month following the sale, and the remaining 10% in the second month following the sale.**Question for Consideration** What is the amount of sales revenue that the company will report on the second-quarter pro forma income statement?**Options** - $1,439,000This exercise will aid in understanding sales budgeting, cash flow timing, and pro forma income statement preparation.

The sales budget is prepared to estimate the sales revenue earned during the period. The quarter…

Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales Sales on Account Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the amount of sales Multiple Choice April May June 50,000 51,000 75,000 390,000 448,000 425,000 440,000 499,000 500,000 $1,439,000 venue that the company will report on the second quarter pro forma income statement?

Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales Sales on Account Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the amount of sales Multiple Choice April May June 50,000 51,000 75,000 390,000 448,000 425,000 440,000 499,000 500,000 $1,439,000 venue that the company will report on the second quarter pro forma income statement?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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