Milo Company manufactures beach umbrellas. The company is 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 $12 per unit. July August September 50,000 December 10,000 30,000 October 70,000 November 20,000 10,000 b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $300,000 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 feet of Gilden, a material that is sometimes hard to acquire. Therefore the company requires that the ending inventory of Gilden 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 June 30 September 30? 72,000 feet feet e. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $76,000 Required 1-a. Prepare a sales budget, by month and in total, for the third quarter July August September Quarter Budgeted units sales Selling price per unit Budgeted sales 1-b. Prepare a schedule of expected cash collections, by month and in total, for the third quarter. Milo Company Schedule of Expected Cash Collections July AugustSeptember Quarter Accounts receivable, June 30 July sales August sales September sales Total cash collections