Yung Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $892,000 in October, $954,000 in November, $1,040,000 in December, and $928,000 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. Yung Reeds Budgeted Cash Collections from Customers For the Months of December and January December January 232,000 $ 260,000 $ Cash sales Collection of credit sales: 20% of current month credit sales 65% of prior month credit sales 156,000 139,200 465,075 53,520 507,000 57,240 8% of credit sales two months ago Total collection of credit sales 934,595 $ $ Total cash collections 935,440