The July 31, 2013, balance sheet for World Windows Inc, includes the following information: Cash Accounts Receivable Merchandise Inventory of R#850 Merchandise Inventory of R#925 $40,000 debit 270,000 debit 8,750 debit 7,200 debit The firm's management has designated $35,000 as the firm's monthly minimum cash balance. Because a piece of equipment was sold at the end of July, the beginning cash balance was greater than the minimum desired amount. Other information about World Windows is as follows: 1. Projected sales (all on account) for the following three months are: R#850 units (units selling price = $250) R#925 units (units selling price = $480) August 1000 September 800 October 1100 500 700 1300 2. Cost of Goods Sold for R#850 and R#925 units approximate 70 and 60 percent, respectively, of sales revenue. 3. Management wants to end each month with 5 percent of the following month's sales in units. Unit cost are assumed to be stable. 4. The collection pattern for accounts receivable is 55 percent in the month of sale, 44 percent in the month following the sale, and 1 percent uncollectible. 5. All accounts payable for inventory are paid in the month of purchase. 6. Other monthly expenses are $28,000, which includes $6,000, of depreciation but does not include uncollectible expense. 7. Investments of excess cash are made in $5,000 increments. Requirements: 1. Prepare a sales budget for August, September and October 2. Prepare a purchases budget for August and September. 3. Forecast the August cash collections. 4. Prepare the cash budget for August including the effects of financing (borrowing or investment).