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Crydon, Inc., manufactures an advanced swim fin for scuba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has

Crydon, Inc., manufactures an advanced swim fin for scuba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget:

a. The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins):
The selling price of the swim fins is $14 per pair.

July 6,300 October 4,300
August 7,300 November 3,300
September 5,300 December 3,300

b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:

41% in the month of sale
46% in the month following sale
13% uncollectible

The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $136,000.

c.

The company maintains finished goods inventories equal to 9% of the following month

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