please answer the required questions (1-4)

Question: Colerain Corporation is a merchandising company that is preparing a profit plan for the third quarter of the ealendar year. The company's balance sheet as of June 30 is shown below: Colerain's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $200,000,$220,000,$210,000, and $230,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 3. Each month's ending inventory must equal 40% of the cost of next month's sales. The cost of goods sold is 65% of sales. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. 4. Monthly selling and administrative expenses are always 565.000 . Each month $5,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. Required: 1. Prepare a schedule of expected cash collections for July. August, and September. Also, compute total cash collections for the quarter ended September 30th. 2a. Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for the quarter ended September 30th. 2a. Prepare a merchandise purchases bedget for July, August, and September. Also, compute total merchandise purchases for the quarter ended September 30th. 2b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also, compute total cash disbursements for merehandise purchases for the quarter ended September 30th. 3. Prepare an income statement for the quarter ended September 30th. 4. Prepare a balance sheet as of September 30th. Answer and Explanation: Answer 1) The first step to creating a schedule of expected cash collections is determining how the sales cach period affect sales in subsequent periods. Since we know that 30% of sales are recovered in the same month of sale and 70% of sales are recovered in the month following the sale, we can determine the number of expected cash receipts for each month. Schedule of expected cash collections: Answer 2a) First determine the budgeted cost of goods sold, which is 65% of sates. Next, determine the desired ending inventory which is 40% of the next month's cost of goods sold. Keep in mind that you should calculate the cost of goods sold for the month of October before you can determine the ending inventory for Sepdember. Keep in mind ending inventory for one period is the beginning inventory for the next period. Merchandise purchases budget. Back Answer and Explanation_... Merchandise nurchases budset. Answer 2b) The first step to creating a schedule of expected cash disbursements is detemining how the purchases each period affect disbursements in subsequent periods. Since we know that 50% of purchases are recovered in the same quarter of purchase and 50% of purchases are made in the quarter following the purchase, we can determine the number of expected cash disbursements for each month. Sehedule of cash disbursements for purchases: Answer 3) The income statement is constructed as follows: Answer 4) The bahance sheet is as follows