Perez Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Perez has budgete sales as indicated in the following table. The company expects a 14 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 Perez will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below.
Perez Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Perez has budgete sales as indicated in the following table. The company expects a 14 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 Perez will report on its first quarter pro forma income statement. Complete this question by entering your answers in the tabs below.
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
Complete part a and b please and thank you
Transcribed Image Text:**Sales Budget Analysis for Perez Company**
Perez Company plans to start operations on January 1, Year 2, focusing on selling digital cameras in shopping malls. The company has prepared a sales budget, anticipating a steady increase in sales by 14% per month for February and March. The ratio of cash sales to sales on account will remain consistent from January through March.
**Requirements:**
a. Complete the sales budget by calculating the missing amounts for February and March.
b. Determine the sales revenue for the first quarter to be reported in Perez's pro forma income statement.
**Instructions:**
- Fill in the missing amounts in the sales budget.
- Note: Do not round intermediate calculations. Round final answers to two decimal places.
**Sales Budget Table:**
| Sales | January | February | March |
|-----------------------------|----------|----------|-------|
| Cash sales | $38,000 | | |
| Sales on account | $111,000 | | |
| Total budgeted sales | $149,000 | | |
This table is a preliminary summary of the sales budget for Perez Company. Calculations need to be completed for the months of February and March, with the necessary percentage increase applied to each type of sale.
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it say march column is incorrect and so is part 2 the total sales revenue
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