Problem 2: Sales Budget, Schedules of Cash Receipts, Purchases Budget, and Cash Payments Problem 2 Galaxy Lighting Company manufactures and sells lighting fixtures. Estimated sales dollars for the next three months are with a selling price of $45 each (all sales are on account): August $300.000 September $351,000 October $495,000 November $540,000 December $615,000 Galaxy Lighting Company estimates that 80% of the sales are collected in the month of sale with the remaining 20% collected the following month Generally. 65% of purchases are due and payable in the month of purchase with the remainder due the following month. Purchase cost per unit for materials is $18. The company maintains an end-of-the-month inventory of 15% of next month's unit sales. August's ending inventory is estimated at 1,170 units and November's ending inventory is estimated as 2,050 units. The accounts payable balance on August 31 is expected to be $13.500 and should be paid in September 1. Prepare a sales budget in dollars and units for September, October, and November 2. Prepare a schedule of cash receipts from customers for September October, and November 3. Prepare a purchases budget for September October and November 4. Prepare a schedule of cash payments for purchases for September October, and November. Galaxy Lighting Company Sales Budget Sept Oct Nov Sales in Units Sept Self Check Galaxy Lighting Company Schedule of Cash Receipts Sept Sales revenue (from sales budget) Cash Collections from sales: Oct Total Cash collections from sales Oct Self Check: Galaxy Lighting Company Purchases Budget Sept Oct Nov Sales in Units (from sales budget) Purchases Required (in dollars) Nov Self Check Galaxy Lighting Company Schedule of Cash Payments for Purchases Sept Oct Nov Purchases (in dallars) Cash payments for purchases! Total cash payments for purchases Sept Self Check