Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has gathered the below information to assist in budget preparation:

The Marketing Department's estimated sales (in units) for the remainder of the year are as below:

July	35,500	October	25,500
August	81,000	November	12,000
September	50,000	December	12,500

The selling price of beach umbrellas is $14 per unit.

All sales are on the account. Based on past experience, sales are aggregated in the following pattern:

%30	in the sales month
%65	in the month following the sale
%5	not collectible

June sales totaled $420,000.

The company keeps stocks of finished goods equal to 15% of the next month's sales. This need will be met by the end of June.

Each beach umbrella requires 4 feet of Gilden, a material that is sometimes difficult to obtain. Therefore, the company requires Gilden's closing inventory to be equal to 50% of the next month's production needs. At the beginning and end of the quarter, the Gilden inventory on hand will be:

30 June	84,650	foot
September 30	?	foot

Gilden costs $0.60 per foot. Half of a month's Gilden purchases are paid in the month purchased; The remainder is paid in the next month. Accounts payable on July 1 for Gilden purchases throughout June will be $43,890.

Necessary:

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

2. Calculate the monthly and total expected cash collections for the third quarter.

3. Calculate the estimated quantity of beach umbrellas that should be produced in July, August, September and October.

4. Calculate the amount of Gilden (in feet) required to be taken on a monthly and total basis for the third quarter.

5. Calculate the monthly and total cost of raw material (Gilden) purchases for the third quarter.

6. Calculate the monthly and total expected cash payments for the third quarter for raw material (Gilden) purchases