# Step-by Solution Let's break down the problem and solve it step by step. ## **Step 1: Find February Sales** The company expects a **4% increase** in sales for February compared to January. ### **a. Calculate February Cash Sales** \[ \text{February Cash Sales} = \text{January Cash Sales} \times 1.04 \] \[ = \$41,800 \times 1.04 = \$43,472 \] ### **b. Calculate February Sales on Account** \[ \text{February Sales on Account} = \text{January Sales on Account} \times 1.04 \] \[ = \$81,800 \times 1.04 = \$85,272 \] ### **c. Calculate February Total Sales** \[ \text{February Total Sales} = \$43,472 + \$85,272 = \$128,744 \] --- ## **Step 2: Find March Sales** The company expects a **3% increase** in sales for March compared to February. ### **a. Calculate March Cash Sales** \[ \text{March Cash Sales} = \text{February Cash Sales} \times 1.03 \] \[ = \$43,472 \times 1.03 = \$44,776.16 \] ### **b. Calculate March Sales on Account** \[ \text{March Sales on Account} = \text{February Sales on Account} \times 1.03 \] \[ = \$85,272 \times 1.03 = \$87,830.16 \] ### **c. Calculate March Total Sales** \[ \text{March Total Sales} = \$44,776.16 + \$87,830.16 = \$132,606.32 \] --- ## **Step 3: Calculate Total Sales Revenue for the First Quarter** Sum the total sales for each month: \[ \text{Total Sales Revenue (Q1)} = \text{January Total} + \text{February Total} + \text{March Total} \] \[ = \$123,600 + \$128,744 + \$132,606.32 \] \[ = \$384,950.32 \] --- ## **Final Sales Budget Table** | Sales | January | February | March | |---------------------|-----------|----------|-----------| | Cash sales | $41,800 | $43,472 | $44,776.16| | Sales on account | $81,800 | $85,272 | $87,830.16| | **Total budgeted** | $123,600 | $128,744 | $132,606.32| --- ## **Final Summary** - The Game Zone's total sales revenue for Q1 (January, February, and March) is **$384,950.32**. - This is the amount to be reported on the pro forma income statement for the first quarter. --- **If you need the answers rounded to the nearest dollar:** - February Cash Sales: $43,472 - February Sales on Account: $85,272 - February Total: $128,744 - March Cash Sales: $44,776 - March Sales on Account: $87,830 - March Total: $132,606 - **Quarter Total:** $384,950 Let me know if you need anything else!

# Step-by-Step Summary ## **Step 1: Find February Sales** In February, the company expects a 4% increase in sales compared to January. The calculated total sales for February amount to **$128,744**. --- ## **Step 2: Find March Sales** For March, the company anticipates a 3% increase in sales relative to February. The total sales for March are calculated to be **$132,606.32**. --- ## **Step 3: Calculate Total Sales Revenue for the First Quarter** The total sales revenue for the first quarter is obtained by summing the sales from January, February, and March. The total revenue reported will be **$384,950.32**. --- ## **Final Summary** The Game Zone's total sales revenue for Q1 is **$384,950.32**, which will be reported on its pro forma income statement. This figure includes the sales from January, February, and March.