Banquisse Wholesalers has asked you to prepare certain parts of a

budget for the $3$rd quarter of the year.

They have provided you with the following data to help you prepare a budget:

$1$ Sales: Seling price per unit is $$11.$ # units

May Actual $9,500$

June Actual $9,000$

July Estimated $8,500$

August Estimated $11,500$

September Estimated $12,000$

October Estimated $12,500$

$2$ Monthly expenses are:

Salaries $$13,000$

Depreciation $4,000$

Utilities $3,000$

Other $4,500$

Property taxes $2,000$

$3$ Collections

All sales are on account and the collection pattern is expected to be:

$40\%$ in the month of sale

$32\%$ in the month following sale

$25\%$ in the second month following sale.

$4$ The cost per unit is $$6\mathrm{.}75$ and the company wants ending inventory to be

equal to $50\%$ of the next month's requirements.

$5$ All inventory purchases are paid in the month following purchase.

Accounts payable is only used for merchandise purchases.

Other expenses, except property taxes, are paid in the month incurred.

$6$ Dividends of $$12,000$ will be declared and paid in September.

$7$ Annual property taxes of $$18,000$ were paid on April $1$st$.$

REQUIRED: For the $3$rd quarter $($July through September$)$:

You will need to do the following for each month and the

quarter in total unless instructed differently.

$1$ Prepare a cash collection budget.

$2$ Calculate net accounts receivable at September $30.$

$3$ Prepare a purchases budget. Assume the # of units in inventory

at July $1$ was $5,500.$

$4$ Calculate the balance in prepaid property taxes at September $30.$

$5$ Calculate the dollar value of September $30$ inventory.