Montley 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: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July... August.. September 35,000 October.. ..70,000 November 50,000 December 20,000 15,000 10,000 The sales budgets for the third quarter of the year are reported as follows. Sales in units Price per unit Sales in dollars July 35,000 12 $420,000 August 70,000 12 $840,000 September 50,000 12 $600,000 Third Quarter 155,000 12 $1,860,000 Sales for June totaled $300,000. All sales are on account. Montley provides a 5 percent discount when customers make payments of credit sales in the month of sale. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 67% in the month following sale 3% uncollectible _Uncollectible credit sales will be written off in the second month following the month of sale. For example, uncollectible balances from credit sales in July will be written off by the end of September _The company maintains its ending finished goods inventory at 15% of the following month's sales in units. This requirement is also met at the end of June. Note that the ending inventory on June 30 is the beginning inventory on July 1. 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 35% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: July 1.... 56,350 feet September 30 ? feet 1 (Hint: Be sure to prepare the production budget for October to determine the ending inventory of Gilden on September 30.) Gilden costs $0.80 per foot. Forty percent of a month's purchases of Gilden are paid for in the month of purchase; the remainder is paid for in the following month. The balance of the accounts payable on July 1 will be $76,000. This amount represents the unpaid balance for purchases of Gilden during June that would be paid in full in July. Required: (Show budgets in a tabular format. No credit will be given for only showing the final figures) 1. (4 points) Prepare a schedule of expected cash collections for each month (July to September) and in total for the third quarter. 2. (1 point) Determine the balance of accounts receivable on September 30. 3. (4 points) Prepare a production budget for each month (July to September) and in total for the third quarter 4. (4 points) Prepare a direct materials purchase budget for Gilden for each month (July to September) and in total for the third quarter. Show the purchase budgets in feet and in dollars. 5. (4 points) Prepare a schedule of expected cash disbursements for Gilden for each month (July to September) and in total for the third quarter