Fareast Products is a manufacturer of air-conditioners. Thus, peak sales occur in August of each year as shown in the company's sales budget (given) for the third quarter, given below: Total budgeted sales (in dollars): July-$3,000,000; August-$4,500,000; September- $1,500,000. Cash collection schedule (given) From past experience, the company has learned that 75% of a month's sales are collected in the month of sale and the remaining 25% are collected in the month following the sale. May sales totaled $500,000, and June sales totaled $1,000,000. Cash budget (given) The company had a beginning cash balance of $50,000 on July, 1. The company requires a minimum cash balance of $40,000 at the end of any month. It maintains a line of credit with a bank at a quarterly interest rate of 3%, The company can borrow on the first day of the quarter and repay back at the end of the quarter. Budgeted cash disbursements were as follows: July August September Third quarter Materials 1,500,000 2,250,000 750,000 4500,000 Direct Labor 400,000 700,000 320,000 1.420,000 Manufacturing 400,000 480,000 420,000 1,300,000 overhead Selling and 200,000 240,000 600,000 1,040,000 The company had a beginning cash balance of $50,000 on July, 1. The company requires a minimum cash balance of $40,000 at the end of any month. It maintains a line of credit with a bank at a quarterly interest rate of 3%. The company can borrow on the first day of the quarter and repay back at the end of the quarter. Budgeted cash disbursements were as follows: July August September Third quarter Materials 1,500,000 2.250,000 750,000 4500,000 Direct Labor 100,000 700,000 320,000 1.420,000 Manufacturing 100,000 180,000 420,000 1,300,000 overhead Selling and 200,000 240,000 600,000 1,040,000 administrative Total disbursements 2,500,000 3,670,000 2.990,000 8,260,000 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter (3 points) 2. Prepare a cash budget for the quarter ending September 30(9 points)