**Rundle Pointers Corporation Sales Projections and Receivables Plan**Rundle Pointers Corporation is set to commence operations on January 1, Year 1. It will function as an online specialty sales company focusing on laser pointers. The sales projections are as follows:- Expected sales for January Year 1: $370,000.- Anticipated monthly sales increase for February and March: 10% each month. All transactions will be made on account, with the expectation of the following receivables collection schedule:- 70% in the month of sale- 21% in the month following the sale- 9% in the second month after the sale**Requirements**a. Prepare a sales budget for the first quarter of Year 1.b. Compute the sales revenue for inclusion in the Year 1 first quarterly pro forma income statement.c. Formulate a cash receipts schedule for the first quarter of Year 1.d. Ascertain the accounts receivable balance as of March 31, Year 1.**Instructions**To complete this task, please enter your responses in the designated tabs below.**Sales Budget for Q1, Year 1**| Sales Budget | January | February | March ||---------------|---------|----------|-------|| Sales on Account | | | |**Tabs to Be Completed:**- Required A- Required B- Required C- Required DPlease move between the different requirements using the navigation buttons given below the projection table.

Requirement:-A Preparation of sales budget as follows under:- Note:- Sales in January $370,000 Increased 10% in the month of February and marchSales budget January February March Sales $370,000 $370,000*1.10 = $407,000 $407,000*1.15 = $447,700Requirement:-B Total Sales revenue in the first quarter =$370,000+$407,000+$447,700 =$1,224,700 Requirement:-C Schedule of cash collection January February March Receipt from January Sales $ 2,59,000 $ 77,700 $ 33,300 Receipt from February Sales $ 2,84,900 $ 85,470 Receipt from March Sales $ 3,13,390 Total Cash collection $ 2,59,000 $ 3,62,600 $ 4,32,160 Note:- 70% in the month of sale, 21% following month of sale, 9% second month following sale As per the Bartley by guidelines I am able to answer first three sub parts only... I hope helpful to you... If you are satisfied... Support me... Thank you...

Business

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a. Prepare a sales budget for the first quarter of year 1. b. Determine the amount of sales revenue Rundle 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.

a. Prepare a sales budget for the first quarter of year 1. b. Determine the amount of sales revenue Rundle 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.

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

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**Rundle Pointers Corporation Sales Projections and Receivables Plan**

Rundle Pointers Corporation is set to commence operations on January 1, Year 1. It will function as an online specialty sales company focusing on laser pointers. The sales projections are as follows:

- Expected sales for January Year 1: $370,000.
- Anticipated monthly sales increase for February and March: 10% each month.

All transactions will be made on account, with the expectation of the following receivables collection schedule:
- 70% in the month of sale
- 21% in the month following the sale
- 9% in the second month after the sale

**Requirements**

a. Prepare a sales budget for the first quarter of Year 1.
b. Compute the sales revenue for inclusion in the Year 1 first quarterly pro forma income statement.
c. Formulate a cash receipts schedule for the first quarter of Year 1.
d. Ascertain the accounts receivable balance as of March 31, Year 1.

**Instructions**

To complete this task, please enter your responses in the designated tabs below.

**Sales Budget for Q1, Year 1**

| Sales Budget | January | February | March |
|---------------|---------|----------|-------|
| Sales on Account | | | |

**Tabs to Be Completed:**
- Required A
- Required B
- Required C
- Required D

Please move between the different requirements using the navigation buttons given below the projection table.

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