Yung Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $900,000 in October, S962,000 in November, $1,025,000 in December, and $936.000 in January. Yung'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 65% in the month after the sale 8% two months after the sale 7% 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. Yung Reeds Sales Budget For the Four Months Ended January October November December January Cash sales 225,000 $ 240,500 $ 256,250 $ 234.000 Credit salos 675,000 721.500 768.750 702.000 Total sales 900.000 $ 902.000 $1,025.000 5 936.000 Requirement 2. Prepare a cash collection budget for December and January, Round all answers up to the nearest dollar Yung Reeds Budgeted Cash Collections from Customers For the Months of December and January December January Cash sales 256250 234000 Collection of credit sales 20% of current month credit sales 65% of prior month credit sales 8% of credit sales two months ago Total collection of credit sales Total cash collections