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Question - Dorough Pointers Inc. expects to begin opeations on Jan. 1, 2009, it will operate as a speciality sales company that sells laser pointers over the Internet. Dorough expects sales in Jan. 2009 to total $12,000 and to increase 10% per month in Feb. and Mar. All sales are on account. Dorough expects to collect 70% of accounts receivable in the month of sale, 20% in the month following the sale, and 10% in the second month following the sale.
Required:
a. Prepare a sales budget for the 1st qtr of 2009.
b. Determine the amount of sales revenue Dorough will report on the first 2009 qtrly pro forma income statement.
c. Prepare a cash receipts schedule or the 1st qtr of 2009.
d. Determine the amount of accounts receivable as of Mar. 31, 2009.
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