Mikail Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $900,000...

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Mikail Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $900,000 in October, $968,000 in November, $1,025,000 in December, and $926,000 in January. Mikail's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected as follows: 30% in the month of the sale 60% in the month after the sale 8% two months after the sale 2% 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. Mikail Reeds Sales Budget For the Four Months Ended January October November December January Cash sales $ 225,000 $ 242,000 $ 675,000 Credit sales 726,000 256,250 $ 768,750 231,500 694,500 $ 900,000 $ 968,000 $ 1,025,000 $ 926,000 Total sales Requirement 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar. Mikail Reeds Budgeted Cash Collections from Customers For the Months of December and January Cash sales Collection of credit sales: 30% of current month credit sales 60% of prior month credit sales 8% of credit sales two months ago Total collection of credit sales Total cash collections December January Mikail Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $900,000 in October, $968,000 in November, $1,025,000 in December, and $926,000 in January. Mikail's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected as follows: 30% in the month of the sale 60% in the month after the sale 8% two months after the sale 2% 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. Mikail Reeds Sales Budget For the Four Months Ended January October November December January Cash sales $ 225,000 $ 242,000 $ 675,000 Credit sales 726,000 256,250 $ 768,750 231,500 694,500 $ 900,000 $ 968,000 $ 1,025,000 $ 926,000 Total sales Requirement 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar. Mikail Reeds Budgeted Cash Collections from Customers For the Months of December and January Cash sales Collection of credit sales: 30% of current month credit sales 60% of prior month credit sales 8% of credit sales two months ago Total collection of credit sales Total cash collections December January