Mikail Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $898,000 in October, $964,000 in November, $1,045,000 in December, and $932,000 in January. Mikail'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 collection budget for December and January. Round all answers up to the nearest dollar. Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. Mikail Reeds Sales Budget For the Four Months Ended January October November December January Cash sales Credit sales Total sales Requirement 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar. Mikail Reeds Budgeted Cash Collections from Customers For the Months of December and January December January

Mikail Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $898,000 in October, $964,000 in November, $1,045,000 in December, and $932,000 in January. Mikail'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 collection budget for December and January. Round all answers up to the nearest dollar. Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. Mikail Reeds Sales Budget For the Four Months Ended January October November December January Cash sales Credit sales Total sales Requirement 2. Prepare a cash collection budget for December and January. Round all answers up to the nearest dollar. Mikail Reeds Budgeted Cash Collections from Customers For the Months of December and January December January

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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