Baird Pointers Corporation expects to begin operations on January 1, Year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Baird expects sales in January...

Baird Pointers Corporation expects to begin operations on January 1, Year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Baird expects sales in January Year 1 to total $340,000 and to increase 20 percent per month in February and March. All sales are on account. Baird expects to collect 66 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 10 percent in the second month following the sale.

Required

1. 
   

   Prepare a sales budget for the first quarter of Year 1.

   
   


2. 
   

   Determine the amount of sales revenue Baird will report on the Year 1 first quarterly pro forma income statement.

   
   


3. 
   

   Prepare a cash receipts schedule for the first quarter of Year 1.

   
   


4. 
   

   Determine the amount of accounts receivable as of March 31, Year 1.