Milo Company manufactures beach umbrellas. The company is now preparing detailed budgets for the third quarter and has assembled the following Information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): July August September 46,000 October 86,000 November 66,eee December 36,000 26,000 26,000 The selling price of the beach umbrellas is $12 per unit. Sales in June were 41.000 units, b. All sales ate an account on the basis of past experience, sales are collected in the following pattern 30% in the month of sale 65% in the month following sale 5% uncollectible The company maintains finished goods inventores equal to 15% of the following month's sules. This requirement will be met at the d. Each beach umbrella requires 4 metres of Gilden a material that is sometimes hard to get. Therefore, the company requires that the Inventory of Gilden on hand at the end of each month be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be as follows June 10 September 30 114,00 metres e Gilden costs $0.80 per metre. One half of a month's purchases of Gilden are paid for in the month of purchase the remainder are paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $92.000 Required: 1. Prepare a sales budget, by month and in total, for the third quarter. Also, prepare a schedule of expected cash collections, by month and in total, for the third quarter MILO COMPANY Sales Budget July August September Quarter Budgeted sales Quarter MILO COMPANY Schedule of Expected Cash Collections July August September Accounts receivable, June 30 July sales August Sales September sales Total cash collections 2. Prepare a production budget for each of the months July to October MILO COMPANY Production Budget for July-October July August September October Total needs 3. Prepare a materials purchases budget for Gilder, by month and in total, for the third quarter. Also, prepare a schedule of expected cash payments for Gidden by month and in total, for the third quarter MILO COMPANY Materials Budget Month August July September Quarter Total needs mee Quarter MILO COMPANY Schedule of Expected Cash Payments August September Accounts payable, June 30 July purchases Apaches September purch Totalcarias