Leret Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $896.000 in October, $966,000 in November, S1,060,000 in December, and $936,000 in January. Leret's sales are 25% cash and 75% credit. The company'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 Cash sales S For the Four Months Ended January November December 224,000 S 241,500 $ 265,000 S 672,000 724,500 795,000 896,000 S 966 000 $ 1,060,000 S January 234,000 702,000 936,000 Credit sales S Total sales Requirement 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar. Leret Reeds Budgeted Cash Collections from Customers For the Months of December and January December $ 265,000 $ January 234,000 Cash sales Collection of credit sales: 20% of current month credit sales 159,000 187,200 Enter any number in the edit fields and then click Check Answer. 2UU, 2UT, Cash sales Collection of credit sales: 20% of current month credit sales 60% of prior month credit sales 159,000 434,700 187,200 477,000 101,430 94,080 14% of credit sales two months ago Total collection of credit sales 687,780 765,630 Total cash collections