Mikail reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $ 896 comma 000 in october, $ 968 comma 000 in november, $ 1 comma 055 comma 000 in december, and $ 934 comma 000 in january. mikail's sales are 30% cash and 70% credit. the company's collection history indicates that credit sales are collected as follows: 25% in the month of the sale 65% in the month after the sale 8% two months after the sale 2% 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.

SALES BUDGET    

OCTOBERNOVEMBERDECEMBERJANUARY

sales  $896,000   $968,000   $1,055,000   $934,000

Cash  $268,800   $290,400   $316,500   $280,200

Credit  $627,200   $677,600   $738,500   $653,800

CASH BUDGET    

          OCT           NOV              DEC                 JAN

Sales  $ 896,000  $968,000      $ 1,055,000  $934,000

Current     $ 425,600 $459,800      $    501, 125  $443,650

Previous                      $407,680      $    440,440  $480,025

two months                                       $       50,176   $54,208

Total  $1,321,600  $1,835,480     $ 2,046,741   $1,911,883

Explanation:

sales budget we multiply the sals by 30% for cash and by 70% for credit

For collected in the current month, we add the cash sales and the 25% of the credit sales

Then, for collected from previous month:

we multiply the credit sales of the previous month by 65%

Last for the two months sales we multiply by 8% two months before

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

answervulnerability assessment;