1. Budgeted sales at OBrien Vineyards over the next four months are given below: July August September October Budgeted sales $100,000 $160,000 $180,000 $120,000 All of the company's sales are on account. Collections for sales on account follow a pattern as follows: 70% of a month's credit sales are collected in the month of sale, 25% are collected in the month following sale, and the remainder is uncollectible. There is a $20,000 accounts receivable balance that will be collected in July. Prepare the Schedule of Cash Collections. July August September Beginning AR July sales: August sales: September sales: Total cash collections 2. OBrien Vineyards plans to sell 200,000 bottles of wine in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of bottles is 30% of the next month's estimated sales. There are 58,000 bottles in inventory on June 30. (hint: for Sept ending inventory, you need 30% of October sales. Remember there is a 5% growth rate in sales per month). Prepare the Production Budget July August September Budgeted sales add: Desired end inventory Total needs less: Beginning inventory Required production