Appreciate with detailed answers

Font Paragraph Is Styles Kothari Corp. produces and sells an industrial cleaning product. For the July-September of 2019, the firm's expected unit sales of its industrial cleaning products are as follows: July August September 2400 2500 2600 Additional information is as follows: 1. The selling price is $18 per unit. All sales are on credit. Kothari's accountant projects that 75% of sales are received in the month of sale, and another 229% are received in the following month. The remaining 3% will be uncollectible. 2. The management at Kothari Corp. wants ending finished goods inventory in each month to be equal to 25% of the following mouth's budgeted sales in units. Bach finished product requires 4 kilograms of direct materials, which are purchased at a cost of $2.50 per kilogram. 40% of these purchases are paid for in cash; 60% are on account, with the cash paid in the following month. Purchases in July are budgeted to be $24,250. The firm's monthly desired ending materials inventory is 1,680 kilograms. 3. Direct labor costs are budgeted to be $7,000 per month. Overhead is expected to be $7,000. per month, including $2,000 of amortization. Cash payments for direct labor and overhead occur in the month as the expenses are incurred. 4. Selling and administrative (S&A) expenses are budgeted to be $3,000 for each month. All S&A expenses are paid in cash in the month as the expenses are incurred. 5. The company expects to purchase $5,000 of equipment in August (purchases paid in cash), 6. On August 1, 2019, the cash account balance is forecasted to be $2,100 7. The manager in Kothari would like to maintain a minimum cash balance of $2,000 at the end of each month. The company has a $50,000 loan facility with RoyBank that allows the company to borrow in increments of $100 at the beginning of cach month. The interest rate on these loans is 18% per year (assume interest rate not compounded), Interest is calculated on the monthly basis and paid the 1" day of the following month. Any borrowed money repaid to RoyBank is paid on the last day of the month. Any borrowed money is repaid in multiples of $100. The company would like to pay back the borrowings as soon as it can. No partial payback is allowed. At the end of July, Kothari will have no outstanding borrowings. Required: a. Prepare a monthly schedule of cash collections for August (3 marks). b. Prepare a monthly schedule of cash disbursements for raw material purchases for August (9 marks). c. Prepare a monthly cash budget for August (10 marks)