Marked out of 12.00 Flag question Fareast Products is a manufacturer of air-condition budget (given) for the third quarter, given below: peak sales occur in August of each year as shown in the company's sales Total budgeted sales (in dollars): July- $3,000,000; August-$4,500,000; September= $1,500,000 Cash collection schedule (given) From past experience, the company has learned that 75% of a month's sales are collected in the month of sale and the verulning 25% are collected in the month following sale. May sates totaled $500,000, and June sales totaled $1,000,000 Cash budget (given) The company had a beginning cash balance of $50,000 on July, 1. The company requires a minimum cash balance of $40,000 at the end of any month It maintains a line of credit with a bank at a quarterly interest rate of 3%. The company can borrow at the first day of the quarter and repay back at the end of the quarter, Budgeted cash disbursements were as follows: September Third quarter Materials 4500,000 Direct Labor Manufacturing overhead Selling and administrative Total disbursements July 1,500,000 400,000 400,000 200,000 2,500,000 August 2.250,000 700,000 480,000 240,000 5.670,000 750,000 520,000 420,000 600,000 2,090,000 1.420,000 1.300,000 1,040,000 8.260,000 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total for the third quarter (3 marks). 2. Prepare a cash budget for the quarter ending September 30(9 marks)