Mikail Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $896,000 in October, 1966,000 in November, $1,040,000 in December, and $932,000 in January. Mikail'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 12% two months after the sale 3% 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 268,800 $ 289,800 $ 312,000 $ 627,200 676,200 728.000 January 279.600 Cash sales $ 652,400 Credit sales $ 896,000 $ 966,000 $ 1,040,000 $ Total sales 932,000 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 December January Cash sales Collection of credit sales: 20% of current month credit sales 65% of prior month credit sales 12% of credit sales two months ago Total collection of credit sales Total cash collections