Budgeted Item: August September October November December Sales $300,000 $360,000 $420,000 $480,000 $390,000 Direct Material Purchases $87,200 $103,200 $117,400 $117,920 $101,120 Direct Labor Costs $ 106,000 $126,000 $146,000 $151,000 $127,000 Overhead Costs $84,800 $92,800 $100,800 $102,800 $93,200 Selling and Admin Costs $31,500 $33,500 $35,500 $37,500 $34,500 All sales are on account. All direct material purchases are on account. All costs besides direct material purchases are made as incurred. The overhead costs include $5,000 of monthly depreciation and the selling and administrative costs include $2,000 of monthly depreciation. In November, Coolidge must make a $10,000 installment payment on a note payable and must pay $7,500 of cash dividends to preferred shareholders in December. The projected beginning balance of cash on October 1 is $5,000. Coolidge would like to maintain a minimum $5,000 cash balance. Vorkpaper #3 SCHEDULE OF CASH COLLECTIONS FROM SALES August Septembe October November December Cash Collections of CREDIT sales: 60%--Month of Sale 30%-- 1 Month after Sale 10%--2 Months after Sale Total Collections of Credit Sales Required: Part A 1. Using the collection pattern indicated in the work paper, prepare a schedule of cash collection from sales for October, November, and December in Workpaper #3 (9 pts). 2. What is the expected Accounts Receivable balance at the end of December? (3 pts)