Problem $7-17$A $($Algo$)$ Preparing a sales budget and schedule of cash receipts LO $7-2$

Baird Pointers Corporation expects to begin operations on January $1,$ year $1$; it will operate as a specialty sales company that sells laser pointers over the Internet. Baird expects sales in January year $1$ to total $$370,000$ and to increase $20$ percent per month in February and March. All sales are on account. Baird expects to collect $66$ percent of accounts receivable in the month of sale, $23$ percent in the month following the sale, and $11$ percent in the second month following the sale.

Required

a$.$ Prepare a sales budget for the first quarter of year $1.$

b$.$ Determine the amount of sales revenue Baird will report on the year $1$ first quarterly pro forma income statement.

c$.$ Prepare a cash receipts schedule for the first quarter of year $1.$

d$.$ Determine the amount of accounts receivable as of March $31,$ year $1.$