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Question - Camtech, which expects to start operations on January 1, 2008, will sell digital cameras in shopping malls. Camtech has budgeted sales as indicated in the following table. The company expects a 10 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.
Sales January February March
Cash sales 50,000 ? ?
Sales on Account 80,000 ? ?
Total Budgeted sales 130,000 ? ?
A. Complete the sales budget by filling in the missing amounts.
B. Determine the amount of sales revenue Camtech will report on its second quarter pro forma income statement.
Calculate the straight-line depreciation. Create an income statement using the results calculated above.
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