Chapter 14, Problem 4E

Exercise 7-4A Preparing sales budgets with different assumptions

 Axon Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 4 percent for Cummings Division, 2 percent for Springfield Division, and 5 percent for Douglas Division.

Required

a.    Complete the sales budget by filling in the missing amounts. (Round figures to the nearest dollar.)

b.    Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.