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 $13 per unit.

July	35,000	October	25,000
August	80,000	November	11,500
September	49,000	December	12,000

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 $377,000.

c.	The company maintains finished goods inventories equal to 15% of the following month