AhmedAhmed

Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be

$ 900 comma 000$900,000

in October,

$ 950 comma 000$950,000

in November,

$ 1 comma 070 comma 000$1,070,000

inDecember, and

$ 928 comma 000$928,000

in January.

AhmedAhmed's

sales are

2525%

cash and

7575%

credit. The company's collection history indicates that credit sales are collected as follows:

2020%

in the month of the sale

6565%

in the month after the sale

1010%

two months after the sale

55%

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.

Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales.

Ahmed Reeds
Sales Budget
For the Four Months Ended January
	October	November	December	January
Cash sales
Credit sales
Total sales

Requirement 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar.

Ahmed Reeds
Budgeted Cash Collections from Customers
For the Months of December and January
	December	January
Cash sales
Collection of credit sales:
20% of current month credit sales
65% of prior month credit sales
10% of credit sales two months ago
Total collection of credit sales
Total cash collections

Enter any number in the edit fields and then continue to the next question.