Serdnic Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $896,000 in October, $058,000 in November, $1,025,000 in December, and $922,000 in January, Serdnic's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected as follows: 20% in the month of the sale 60% in the month after the sale 14% two months after the sale 6% 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. (COD)
Serdnic Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $896,000 in October, $058,000 in November, $1,025,000 in December, and $922,000 in January, Serdnic's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected as follows: 20% in the month of the sale 60% in the month after the sale 14% two months after the sale 6% 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. (COD)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Requirement 1. Prepare a sales budget for all four months, showing the breakdown between cash and credit sales.
Serdnic Reeds
Sales Budget
For the Four Months Ended January
November
December
Cash sales
Credit sales
Total sales
October
January
Transcribed Image Text:Serdnic Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be $896,000 in October, $058,000 in November, $1,025,000
in December, and $922,000 in January. Serdnic's sales are 25% cash and 75% credit. The company's collection history indicates that credit sales are collected
as follows:
20% in the month of the sale
60% in the month after the sale
14% two months after the sale
6% 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.
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