Exercise 14-4 Preparing sales budgets with different assumptions LO 14-2

Axon Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 4 percent for Cummings Division, 2 percent for Springfield Division, and 5 percent for Douglas Division.

Required

A.) Complete the sales budget by filling in the missing amounts.

B.) Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.

Part A:

Division	First Quater	Second Quarter	Third Quarter	Fourth Quarter
Cummings Division	$75,000
Springfield Division	$125,000
Douglas Division	$100,000

Part B:

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Sales Revenue