Assignment task:
Imagine Company, which expects to start operations on July 1, will sell digital cameras in shopping malls. Imagine has budgeted sales as indicated in the following table. The company expects a 10% increase in sales per month during August and September. The ratio of cash sales to sales on account will remain stable from July through September. July August September Cash Sales $40,000 Sales on Account $370,000 Determine the amount of sales revenue Imagine will report on its third quarter pro forma income statement. Imagine Company, which expects to start operations on July 1, will sell digital cameras in shopping malls. Imagine has budgeted sales as indicated in the following table. The company expects a 10% increase in sales per month during August and September. The ratio of cash sales to sales on account will remain stable from July through September. July August September Cash Sales $40,000 Sales on Account $370,000 Determine the amount of sales revenue Imagine will report on its third quarter pro forma income statement. $132,400 $1,224,700 $496,100 $1,357,100