In order for a company to be successful it has to be to create good budgets and follow the budgets in order to ensure that it has the money available based on collections of credit sales to pay for the raw materials and labour for products that will be sold. To assess your understating of the budgeting process, use the information from Problem 7-4 on pages 325 and 326 to respond to the following requirements: Requirement Clearly label whether your calculations are for part A, B, C, D or E.

Part A (2 marks) Prepare a sales budget, by month and in total, for the third quarter. Your budget should be [provided both in number of units expected to be sold and the total sales dollars.

Part B (5 marks) Prepare a schedule of expected cash collections, by month and in total for the third quarter.

Part C (8 marks) Prepare a production budget for the months of July, August, September and October. Your budget should be by month.

Part D (16 marks) Prepare a materials purchases budget for the company, by month and in total for the third quarter

Part E (5 marks) Prepare a schedule of expected cash payments for the company by month and in total for the third quarter.