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

$892,000

in October,

$958,000

in November,

$1,055,000

in December, and

$936,000

in January.

Rovniak'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

12% two months after the sale

8% 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.

Question content area bottom

Part 1

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

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