Franklin Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Franklin has budgeted sales as indicated in the following table. The company expects a 13 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. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Franklin will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below. Required A Required B Complete the sales budget by filling in the missing amounts. (Do not round intermediate calculations. Round final answers to two decimal places.) Sales Cash sales Sales on account Total budgeted sales January 45,000 112,000 $ 157,000 $ $ February 0.00 $ March 0.00

Franklin Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Franklin has budgeted sales as indicated in the following table. The company expects a 13 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. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue Franklin will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below. Required A Required B Complete the sales budget by filling in the missing amounts. (Do not round intermediate calculations. Round final answers to two decimal places.) Sales Cash sales Sales on account Total budgeted sales January 45,000 112,000 $ 157,000 $ $ February 0.00 $ March 0.00

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

Franklin Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Franklin has
budgeted sales as indicated in the following table. The company expects a 13 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.
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue Franklin will report on its first quarter pro forma income statement.
Complete this question by entering your answers in the tabs below.
Required A Required B
Complete the sales budget by filling in the missing amounts. (Do not round intermediate calculations. Round final answers to
two decimal places.)
Sales
Cash sales
Sales on account
Total budgeted sales
January
45,000
112,000
$ 157,000 $
$
February
0.00 $
March
0.00

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