a. The Marketing Department has estimated sales as follows for the remainder of the year (number of water tubes): 4,300 July 7,90e October August 6,400 November September 5,400 December 3,400 3,900 The selling price of the water tubes is $60 b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: 50% in the month of sale 45% inthe month following sale 5% uncollectible The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $167,000. C. The company maintains finished goods inventories equal to 20% of the following month's sales. The d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound. To prevent shortages, inventory of finished goods on July 1 will be 1,580 units. the company would like the inventory of synthetic rubber compound on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of synthetic rubber compound on hand on July 1 will be 4,560 kilograms. e. The synthetic rubber compound costs $2.50 per kilogram. Water Sport pays for 70% of its purchases in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for synthetic rubber compound purchases will be $15,600 on July 1 Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units of water tubes and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Sales budget August July September Quarter Budgeted sales (units) Selling price per unit Total budgeted sales Schedule of expected cash collections August September Quarter Accounts receivable July sales August sales September sales: Total cash collections , beginning balance 2. Prepare a production budget for each of the months July through October. Production budget July August September October Budgeted sales (units) Total needs Required production (units) 3. Prepare a direct materials purchases budget for synthetic rubber compound, by month and in total, for the third quarter. Also prepare a schedule of expected cash disbursements for synthetic rubber compound, by month and in total, for the third quarter. Direct materials purchases budget August September Quarter Required production (units) Material D236 needed per unit (kgs.) Production needs (kgs.) Total Material D236 needs 0 Raw materials to be purchased Cost of raw materials to be purchased at $2.50 per kg Schedule of expected cash disbursement July August September Quarter Accounts payable, beginning balance July purchases August purchases September purchases Total cash disbursements 0