Rovniak Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $904,000 in October, $962,000 in November, $1,030,000 in December, and $938,000 in January. Rovniaks 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.

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 Nov. Dec. Jan.

Cash sales- [] [] [] []

Credit sales-[] [] [] []

Total sales-[] [] [] []