FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Munoz Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that
sells laser pointers over the Internet. Munoz expects sales in January year 1 to total $270,000 and to increase 15 percent per
month in February and March. All sales are on account. Munoz expects to collect 69 percent of accounts receivable in the
month of sale, 24 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 year 1.
b. Determine the amount of sales revenue Munoz will report on the year 1 first quarterly pro forma income statement.
c. Prepare a cash receipts schedule for the first quarter of year 1.
d. Determine the amount of accounts receivable as of March 31, year 1.
Complete this question by entering your answers in the tabs below.
Required A
Required B Required C Required D
Determine the amount of accounts receivable as of March 31, year 1. (Do not round intermediate calculations. Round your
final answers to the nearest whole dollar.)
Accounts receivable
< Required C
Required D >
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