Water Sport Inc. manufactures a small personal water tube used for children learning to swim. 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$7,100$October$3,500$August$5,600$November$3,100$September$4,600$December$2,600$The selling price of the water tubes is $$60.$b$.$ All sales are on account. Based on past experience, sales are expected to be collected in the following pattern: $50\%$in the month of sale$45\%$in the month following sale$5\%$uncollectibleThe beginning accounts receivable balance $($excluding uncollectible amounts$)$ on July $1$ will be $$163,000.$The company maintains finished goods inventories equal to $20\%$ of the following months sales. The inventory of finished goods on July $1$ will be $1,420$ units.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 months production needs. The inventory of synthetic rubber compound on hand on July $1$ will be $4,080$ kilograms.The synthetic rubber compound costs $$4\mathrm{.}00$ per kilogram. Water Sport pays for $70\%$ of its purchases in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for synthetic rubber compound purchases will be $$13,200$ 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. 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.Sales budgetJulyAugustSeptemberQuarterBudgeted sales $($units$)7,100$selected answer correct$5,600$selected answer correct$4,600$selected answer correct$17,300$Selling price per unit$$60$selected answer correct$$60$$$60$$$60$Total budgeted sales$$426,000$$$336,000$$$276,000$$$1,038,000$ Schedule of expected cash collectionsJulyAugustSeptemberQuarterAccounts receivable, beginning balancenot attemptednot attemptednot attemptednot attemptedJuly sales:not attemptednot attemptednot attemptednot attemptedAugust sales:not attemptednot attemptednot attemptednot attemptedSeptember sales:not attemptednot attemptednot attemptednot attemptedTotal cash collections$0000$Prepare a production budget for each of the months July through October.Production budgetJulyAugustSeptemberOctoberBudgeted sales $($units$)426,000$selected answer incorrect$336,000$selected answer incorrect$276,000$selected answer incorrect$210,000$selected answer incorrectAdd: Desired ending inventoryselected answer correctnot attemptednot attemptednot attemptednot attemptedTotal needs$426,000336,000276,000210,000$Less: Beginning inventoryselected answer correctnot attemptednot attemptednot attemptednot attemptedRequired production $($units$)426,000336,000276,000210,000$