Sales Budget and Cash Management for Sutton Pointers Corporation
Sales Budget Calculation
Sutton Pointers Corporation is gearing up to start its operations as a specialty sales company selling laser pointers online. The company anticipates sales of $300,000 in January 2015, with a 15% increase forecasted for February and March.
Sales Budget Summary:
January: $300,000
February: $345,000
March: $396,750
Sales Revenue Projection
Based on the sales budget, the total sales revenue that Sutton Pointers Corporation will report for the first quarter of 2015 is $1,041,750.
Cash Receipts Schedule
The cash receipts schedule outlines how much of the accounts receivable will be collected each month.
| Month | Sales | Cash Receipts |
|---|---|---|
| January | $300,000 | $198,000 |
| February | $345,000 | $296,700 |
| March | $396,750 | $374,205 |
Accounts Receivable as of March 31, 2015
By the end of March 2015, the amount of accounts receivable remaining for Sutton Pointers Corporation is $22,545.
Questions:
a. What is the sales budget for the first quarter of 2015?
b. How much sales revenue will Sutton report on the first 2015 quarterly pro forma income statement?
c. Can you prepare a cash receipts schedule for the first quarter of 2015?
d. What is the amount of accounts receivable as of March 31, 2015?
Answers:
a. January= $300,000, February = $345,000 and March = $396,750
b. $1,041,750
c. January= $198,000, February = $296,700 and March = $374,205
d. $22,545