Reference no: EM132896730

Question - Adams Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Adams expects sales in January 2019 to total $300,000 and to increase 10 percent per month in February and March. All sales are on account. Adams expects to collect 68 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 9 percent in the second month following the sale.

-a sales budget for the first quarter of 2019.

-the amount of sales revenue Adams will report on the first 2019 quarterly pro forma income statement.

-a cash receipts schedule for the first quarter of 2019.

-the amount of accounts receivable as of March 31, 2019.

Required -

A. Make a sales budget for the first quarter of 2019.

B. Determine the amount of sales revenue Adams will report on the first 2019 quarterly pro forma income statement.

C. Make cash receipts schedule for the first quarter of 2019.

D. Determine the amount of accounts receivable as of March 31, 2019.