Goodman Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $890,000 in October, $960,000 in November, $1,030,000 in December, and $932,000 in January. Goodman's sales are 30% cash and 70% on credit. Goodman's collection history indicates that credit sales are collected as follows:
20% in the month of the sale
60% in the month after the sale
14% two months after the sale
6% are never collected
Requirements
1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales.
2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar.