Water Sport Inc., manufactures a small personal water tube used for children learning to wim Management is now preparing detailed budgets for the third quarter July through September, and has assembled the following information to assist a The Marketing Department has estimated sales as follows for the remainder of the year number of water tubes July 7600 October 4,000 August 6100 November 3,500 September 5300 December 3100 The selling price of the water tubes is 560 b. Al sales are on account Based on past experience sales are expected to be collected in the following pattem So in the month of sale 45 in the month following Suncollectable The beginning accounts receivable balance escluding collectible amounts on July I will be $165.500 The company maintaininished goods inventore to 20 of the following monthses. The inventory of finished goodson July we 1520 units d. Each water te requires kilograms of synthetic polycopene lubber compound. To revent shortages, the company would like the inventory of the rubber compound on hand at the end of each month to be at 20% of the following month's production needs. The ventory of sy rubber compound on and on July I will be 400 gram The synthetic rubber compound costs $400 per gram Water Sport pays for 70 Durchase the month of purchase the remainder said for the following month The accounts payable balance for synthetic rubber compound purchases will be 514700 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 quartet September Budsted sales units Suling price per unit Total budgeted sales September Schle of expected and collections luty Accounts receivable beginning balance uy sales August as September Toalhotections 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 Required production (units) 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 Decals purchases budget July Alanish September Qui Required production units) Mat236 needed per units Production needs ) Total Material 0236 needs 0 o 0 + 0 Raw materials to be purchased Cont of raw materials to be purchased a 5400 per kg 0 O 0 Siletailsatanicash tanraan July Angus Accounts payable leng balance September Quarte Apurchases