The Game Zone Sells Computer and Other Electronic Games Required:
(A)Complete the Sales Budget by Filling in the Missing

question 113

Essay

The Game Zone sells computer and other electronic games.The store has budgeted sales for January Year 2 as indicated in the following table.The company expects a 4 percent increase in sales for the month of February and a 3 percent increase for March. $\begin{array}{|l|r|c|c|}\hline \text {Sales }& \text { January } & \text { February } & \text { March } \\\hline \text {Cash sales }&\$\quad40,000 & ? & ? \\\hline \text {Sales on account }&\underline {\$\quad80,000} & ? & ? \\\hline \text {Total budgeted sales}& \$\quad120,000 & ? & ? \\\hline\end{array}$ Required:
(a)Complete the sales budget by filling in the missing amounts.
(b)What is the amount of sales revenue the company will report on its pro forma income statement for the first quarter?

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Definitions:

Calculate Elasticity

The process of determining the measure of responsiveness of the quantity demanded or quantity supplied of a good to a change in one of its determinants, such as price or income.

Unit Elastic

A situation in economics where a change in the price of a good leads to a proportional change in quantity demanded or supplied.

Total Revenue

Total revenue refers to the entire amount of money generated by a firm or entity from its business activities, such as sales of goods or services, before any expenses are subtracted.

Ideally

In a perfect or most suitable way, often used to describe an optimal condition or scenario.