Go Fly a Kite Inc. specializes in manufacturing deluxe kites and sells them to sports toy stores across Canada and Europe. Peak sales for one of their products, occur in August every year. The company has estimated the following sales: Month July August September October November Other information Expected sales in units 40,000 60,000 30,000 20,000 20,000 The company's year-end is December 31. The company sells the kites for $25 each. Based on history, the company expects that 20% of sales are cash. Of the credit sales, 40% is collected in the month of sale and the remainder is collected in the month following the sale. Accounts receivable as at June 30th was $100,000; all of which is expected to be collected in July. To protect against inventory shortages (in case sales are higher than expected), the company has a policy that ending finished goods inventory is 20% of the following month's sales. The company had ending inventory on June 30th of 8,000 kites. Each kite requires 2 meters of nylon (direct materials). The cost per meter is $5.00. The company wants to ensure it has always enough direct materials on hand and therefore has indicated that ending inventory of direct materials will be 25% of the following month's production needs for the kites. The company had 8,000 meters of direct materials on hand as at July 1st. The company purchases all direct materials on account and pays for them the month following purchase. Purchases of materials in June amounted to $400,000. Due to the design, the company uses substantially all machine work to create the kites. Each kite only takes 0.5 hours of direct labor and the direct labor rate per hour is $15.00. Total fixed costs ( manufacturing and administrative) are $200,000 per month and paid in full each month. The company plans to pay a dividend of $45,000 in August. The company plans to sell vacant land for $75,000 in July The company plans to purchase equipment of $27,000 in August and pay for it in full in September. The company had $95,000 in the bank account on June 30th. Required: For the third quarter, prepare a : 1. Cash collection budget 2. Production budget in units 3. Direct materials purchases budget and the cash disbursements budget for direct materials 4. Direct labour budget 5. Cash budget for the third quarter of the year (show each month separately and then show the total for the quarter)