Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Bright Minds expects to collect 70% of the sales on account in the month of sale, and 20% in the month following the sale, and the remainder in the second month following the sale.
What is the amount of sales revenue that the company will report on the second quarter pro forma income statement?

Question

Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows:  Bright Minds expects to collect 70% of the sales on account in the month of sale, and 20% in the month following the sale, and the remainder in the second month following the sale.
What is the amount of sales revenue that the company will report on the second quarter pro forma income statement?

Quizplus · Accepted Answer

Sales revenue = April sales + May sales + June sales
Sales revenue = ($30,000 + $370,000) + ($43,000 + $432,000) + ($55,000 + $405,000) = $1,335,000

Bright Minds Toy Company Prepared the Following Sales Budget for the Second