AB 1 The Master Budget D E 2 Sales and cash collections budgets 3 FL G H J K 4 Augustine Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be: 5 6 October November December January $904,000 $964,000 $1,045,000 $936,000 7 8 Augustine's sales are: 9 10 11 20% cash 80% credit 12 The company's collection history indicates that credit sales are collected as follows: 13 14 15 16 17 30% in the month of the sale 60% in the month after the sale 8% two months after the sale 2% are never collected 18 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you 19 copy/paste from the Instruction tab you will be marked wrong. 20 21 Requirements 22 1 Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. 23 2 Prepare a cash collections budget for December and January. 24 a. Use cell references from the prior requirement, if applicable. 25 B C D E G H F 11. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction 2 tab you will be marked wrong.) 3 4 5 10 6 7 8 Cash sales 9 Credit sales 10 Total sales revenue 11 Augustine Reeds Sales Budget For the Four Months Ended January October November December January 12 2. Prepare a cash collections budget for December and January. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction 13 tab you will be marked wrong. Use cell references from the prior requirement, if applicable.) 14 15 16 17 18 19 Augustine Reeds Budgeted Cash Collections from Customers For the Months of December and January Month December January 20 Cash sales in current month 21 Collection on credit sales: 22 Credit sales from current month 23 Credit sales made one month ago 24 Credit sales made two month ago 25 Total cash collections 26