The data below pertains to the third quarter of Al Ain Company which manufactures toys. Below is the estimated sales (in units): July August September October November December 45,000 75.000 95.000 55.000 25,000 35,000 a. The selling price of the toys is $10 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: Month of sale Month following sale Uncollectible 25% 70% 5% f. c. Sales for June totaled $550,000. d. The company maintains finished goods inventories equal to 20% of the following month's sales. This requirement will be met at the end of June. e. Each toy requires 3 pounds of raw materials. The company requires that the ending inventory of raw materials be equal to 10% of the following month's production needs. g. The raw material costs $1.50 per pound. h. 40% of a month's purchases of raw materials is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on June 30 will be $125,000 i. Required: Prepare: 1. Prepare a sales budget, by month and in total, for the quarter. (6 marks) 2. Prepare a schedule of expected cash collections, by month and in total, for the quarter. (20 marks) 3. Prepare a production budget for each of the months July, August, September and October (10 marks) 4. Prepare a direct materials budget, by month and in total, for the quarter. (15 marks) 5. Prepare a schedule of expected cash disbursements, by month and in total, for the quarter. (15 marks) 6. Prepare cash budget (24 marks) Total (90 marks)