The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $167.000 c. The company maintains finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods on July 1 will be 1.580 units. d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound To prevent shortages, the company would like the inventory of synthetic rubber compound on hand at the end of each month to be equal to 20% of the following month's production needs. The inventory of synthetic rubber compound on hand on July 1 will be 4,560 kilograms e. The synthetic rubber compound costs $2.50 per kilogram. Water Sport pays for 70% of its purchases in the month of purchase the remainder is paid for in the following month. The accounts payable balance for synthetic rubber compound purchases will be $15,600 on July 1 Required: 1. Prepare a sales budget, by month and in total, for the third quarter (Show your budget in both units of water tubes and dollars) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. Budgeted sales (units) Selling price per unit Total budgeted as Sales budget July August September Quarter 7.900 6,4001 2.400 19,700 605 60 $ 605 60 474.000 $ 38400015 124 000 $ 1.109.000 5 September Quarter Schedule of expected cash collections July August Accounts receivable, beginning balance 167,000 July sales: 237,000 213,300 August sales 192,000 September sales Total cash collections 404,000 405,300 172,800 172,800 2. Prepare a production budget for each of the months July through October Production budget July August September October Budgeted sales (units) 2. Prepare a production budget for each of the months July through October Production budget July August September October Budgeted sales (units) Total needs 0 0 0 0 Required production (units) 0 0 0 3. Prepare a direct materials purchases budget for synthetic rubber compound, by month and in total, for the third quarter Also prepare a schedule of expected cash disbursements for synthetic rubber compound, by month and in total, for the third quarter Direct materials purchases budget July August September Quarter Required production (units) Material D236 needed per unit (kgs.) Production needs (kgs.) 0 0 0 0 Total Material D236 needs 0 0 0 Raw materials to be purchased Cost of raw materials to be purchased at $2.50 per kg Kg Quarter Schedule of expected cash disbursement July August September Accounts payable, beginning balance July purchases August purchases September purchases Total cash disbursements 0 $ 0 $