II. ABC Company manufactures beach umbrellas. The Company is an preparing detailed budgets for the third quarter and has assembled the following information to assist the Budget preparation:

a) The Marketing Department has estimated sales as follows for the remainder of the year (in units):

July	30,000
August	70,000
September	50,000
October	20,000
November	10,000
December	10,000

The selling price of umbrellas is $12 each.

The total sales

b) All sales are on account. Based on pastexperience sales are expected to be collected in the following pattern:

30% in the month of Sale; 65% in the month of following sale; 5% uncollectible.

Sales for June were $300,000

c) The company maintains finished goods inventories equal to 15% of the following months sales. This requirement will be met at the end of June.

You are required to :

1. Calculate the estimated sales, by month and in total, for the third quarter.

2. Calculate the expected cash collections by month and in total for the third quarter.

3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. (15