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

question 61

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% increase in sales for the month of February and a 3% increase for March.
$$\begin{array} { l c c c } \text { Sales } & \text { January } & \text { February } & \text { March } \\\text { Cash sales } & \$ 40,000 & ? & ? \\\text { Sales on account } & \$ 80,000 & ? & ? \\\text { Total budgeted sales }& \$ 120,000 & ? & ?\end{array}$$ 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:

Par Value

The face value of a bond or a stock as stated by the issuing company, which does not necessarily match the market value.

Annual Dividend

The total amount of dividends a shareholder receives per share within a year.

Market Rate

The prevailing interest rate available in the marketplace for securities or loans of a similar risk and maturity profile.

Constant Dividend

A dividend policy in which a company pays a fixed amount in dividends to shareholders permanently or over a long period.