Budgeted sales for the month of April are shown in the following table: SalesAprilMayJuneCash Sales $1,050 Sales on Account $1,350 The company expects a 10% increase in sales per month for May and June. The amount of sales revenues that would appear on the company's 2nd quarter pro forma income statement would be Multiple Choice

Question

A) $7,944.00
B) $7,213.25
C) $4,468.50
D) $2,904.00

Answer 1

To calculate the sales revenues for May and June, we need to multiply the sales for April by the expected increase of 10% for each month:

May sales = $1,050 + ($1,050 * 0.10) = $1,050 + $105 = $1,155

June sales = $1,155 + ($1,155 * 0.10) = $1,155 + $115.50 = $1,270.50

The total sales revenues for the second quarter would be:

April sales + May sales + June sales = $1,050 + $1,155 + $1,270.50 = $3,475.50

Therefore, the correct answer is D) $2,904.00.