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): The selling price of the beach umbrellas is $10 per unit. Sales in June were 30,000 units. b. All sales are on account. On the basis of past experience, sales are collected in the following pattern: c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. 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: 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 $81,000. 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. 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. 2. Prepare a production budget for each of the months July to October. 3. Prepare a materials purchases budget for Gilden, by month and in total, for the third quarter. Also, prepare a schedule of expected cash payments for Gilden, by month and in total, for the third quarter. Westex Products is a wholesale distributor of industrial cleaning products. The company treasurer has assembled the following information to assist in preparing a detailed cash budget to support the company's loan application for short-term financing with a local bank: a. Budgeted sales and merchandise purchases for the year 2020, as well as actual sales and purchases for the last quarter of 2019 , are as follows: b. The company normally collects 65% of a quarter's sales before the quarter ends and another 33% in the following quarter. The remainder are uncollectible. This pattern of collections is now being experienced in the 2019 fourth-quarter actual data. c. 80% of a quarter's merchandise purchases are paid for within the quarter. The remainder are paid in the following quarter. d. Operating expenses for the year 2020 are budgeted quarterly at $115,000 plus 15% of sales. Of the fixed amount, $46,000 each quarter is depreciation. e. The company will pay $23,000 in dividends each quarter. f. Equipment purchases of $173,420 will be made in the second quarter, and purchases of $110,400 will be made in the third quarter. These purchases will be for cash. g. The cash account contained $23,000 at the end of 2019 . The treasurer feels that this represents a minimum balance that must be maintained. h. Any borrowing will take place at the beginning of a quarter, and any repayments will be made at the end of a quarter at an annual interest rate of 10%. Interest is paid only when the principal is repaid. All borrowings and all repayments of the principal must be in round $1,000 amounts. Interest payments can be in any amount. (Compute interest on whole months, e.g., 1/12, 2/12.) i. At present, the company has no loans outstanding. Required: 1. Prepare the following by quarter and in total for the year 2020 : a. A schedule of expected cash collections. b. A schedule of budgeted cash disbursements for merchandise purchases. 2. Compute the expected cash payments for operating expenses, by quarter and in total, for the year 2020. 3. Prepare a cash budget, by quarter and in total, for the year 2020 . In your budget, clearly show the quarter(s) in which borrowing will be necessary and the quarter(s) in which repayments can be made, as requested by the company's bank. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) + 4. Consider the cash balance at the end of the fourth quarter as calculated in Requirement (3). Recalculate the ending balance if repayment of principal can be in round $100 amounts. (Do not round intermediate calculations. Round your answer to 2 decimal places.)