Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. The companys balance sheet as of June 30 is shown below: COLERAIN CORPORATION Balance Sheet June 30 Assets Cash $ 92,000 Accounts receivable 138,000 Inventory 64,000 Plant and equipment, net of depreciation 320,000 Total assets $ 614,000 Liabilities and Shareholders Equity Accounts payable $ 73,000 Common shares 420,000 Retained earnings 121,000 Total liabilities and shareholders equity $ 614,000 Colerains managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $230,000, $250,000, $240,000, and $260,000, respectively. All sales are on credit and all credit sales are collected. Each months credit sales are collected 25% in the month of sale and 75% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each months ending inventory must equal 40% of the cost of next months sales. The cost of goods sold is 60% of sales. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. Monthly selling and administrative expenses are always $77,000. Each month, $10,000 of this total amount is depreciation expense and the remaining $67,000 relates to expenses that are paid in the month they are incurred. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common shares or repurchase its own shares during the quarter ended September 30. Required: 1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.