Alexander

Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be$904,000 in October,$960,000 in November,$1,060,000 in December, and$930,000 in January.Alexander's sales are 30%cash and 70% credit. The company's collection history indicates that credit sales are collected as follows:

20%in the month of the sale

65%in the month after the sale

10%two months after the sale

5%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.