Comprehensive Problem (Algo) LO 7-1, 7-2, 7-3, 7-4, 7-5, 7-6 The management team of Benson Modems, Inc. (BMI) wants to investigate the effect of several different growth rates on sales and cash receipts. Cash sales for the month of January are expected to be $40,000. Credit sales for January are expected to be $200,000. BMI collects 100 percent of credit sales in the month following the month of sale. Assume a beginning balance in accounts receivable of $192,000. Required Calculate the amount of sales and cash receipts for the months of February and March assuming a growth rate of 2 percent and 4 percent. The results at a growth rate of 1 percent are shown as an example. Sales Budget Jan Cash sales $ 40,000 Sales on account 200,000 Total budgeted sales $240,000 Schedule of Cash Receipts Current cash sales $ 40,000 Plus collections from accounts receivable 192,000 Total budgeted collections $ 232,000 Feb $ 40,400 202,000 $242,400 Mar $ 40,804 204,020 $244,824 $ 40,400 200,000 $240,400 $ 40,804 202,000 $242,804 Use the following forms, assuming a growth rate of 2 percent and 4 percent: Complete this question by entering your answers in the tabs below. 2 percent 4 percent Calculate the amount of sales and cash receipts for the months of February and March assuming a growth rate of 2 percent. Sales Budget Growth rate of 2% Feb Mar Jan Cash sales $ 40,000 Sales on account 200,000 240,000 Total budgeted sales $ Schedule of Cash Receipts Current cash sales $ 40,000 Plus collections from accounts receivable 192,000 Total budgeted collections $ 232,000 2 percent 4 percent > Use the following forms, assuming a growth rate of 2 percent and 4 percent: Complete this question by entering your answers in the tabs below. 2 percent 4 percent Calculate the amount of sales and cash receipts for the months of February and March assuming a growth rate of 4 percent. Sales Budget Growth rate of 4% Feb Mar Jan Cash sales $ 40,000 Sales on account 200,000 240,000 Total budgeted sales $ Schedule of Cash Receipts Current cash sales $ 40,000 Plus collections from accounts receivable 192,000 Total budgeted collections $ 232,000