Requirement 2 needed

2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar.

Rovniak Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $908,000 in October, $968,000 in November, $1,060,000 in December, and $936,000 in January. Rovniak's sales are 20% cash and 80% credit. The company's collection history indicates that credit sales are collected as follows: 25% in the month of the sale 60% 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. December January Cash sales Collection of credit sales: 25% of current month credit sales 60% of prior month credit sales 10% of credit sales two months ago Total collection of credit sales Total cash collections