FreddieReeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $908,000 in October, $950,000 in November, $1,065,000 in December and $922,000 in January. Freddie's sales are 20% cash and 80% credit. Freddie's collection history indicates that credit sales are collected as follows: 25% in the month of the sale 60% in the month after the sale 12% two months after the sale 33% are never collected.

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.

Answer rating: 100% (QA)

A C D E F H 1 1 October November December January 908000 9620... View the full answer