Answer:
1. Sales Budget
October November December January
Total Sales $ 904,000 $ 964,000 $1,045,000 $ 936,000
Cash Sales - 20 $180,800 $192,800 $209,000 $187,200
Credit Sales - 80%$723,200 $771,200 $836,000 $748,800
2.Cash collections budget
December January
Cash Sales $209,000 $187,200
Credit Sales - 30% (0) $250,800 $224,640
Credit Sales - 60% (1) $462,720 $501,600
Credit Sales - 8% (2) $ 57,856 $ 61,696
Total $980,376 $975,136
Explanation:
1. Sales Budget
The Budget shows Both Cash and Credit Sales expected by the firm
2.Cash collections budget
Include Cash collections from both Cash and Credit Sales (as appropriate)
