Digital Flash, which expects to start operations on January 1, 2007, will sell digital cameras in shopping malls. Digital Flash has budgeted sales as indicated in the following table. The company expects a 10 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.

Required

a. Complete the sales budget by filling in the missing amounts.

b. Determine the amount of sales revenue Digital Flash will report on its second quarter pro forma income statement.

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Sales January February March ?? 22 ? ? ? ? Cash sales Sales on account Total budgeted sales $ 40,000 60,000 $100,000