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:

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.

Marginal Revenue Curve

A graphical representation showing how marginal revenue changes as output level changes.

Competitive Industry

An industry characterized by many firms offering similar products where no single firm can influence the market price.

Monopolistic Industry

An industry characterized by the domination of one firm which controls the majority of the market share and can influence price and competition.