Augustine Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $904,000 in October, $964,000 in November, $1,045,000 in December, and $936,000 in January. Augustine's sales are 20% cash and 80% credit. The company's collection history indicates that credit sales are collected as follows:
30% in the month of the sale
60% in the month after the sale
8% two months after the sale
2% 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 collections budget for December and January. Round all answers up to the nearest dollar.