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 astembled the following information to askist a. The Marketing Department has estimated sales as follows for the remainder of the year (number of water tubes) The selling price of the water tubes is $60 b All sales are on account Based on past experience, soles are expected to be collected in the following pattern: The beginning accounts recelvable balance (excluding uncollectible amounts) on July 1 will be $165,000. c. The company maintains finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods or July 1 will be 1,500 units. d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound. To prevent shortages, the company would ike the inventory of synthetic rubber compound on hand at the end of each month to be equal to 20% of the following month's. d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound, To prevent shortages, the company would hike the inventory of synthetic rubber compound on hand at the end of each month to be equat to 20% of the following month'ts production needs. The inventory of synthetic rubber compound on hand on July i wirl be 4.320 kilograms. e. The synthetic rubber compound costs $3.50 per kilogram. Water Sport pays for 705 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 wit be $14,400 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 doliars) Also prepare a schedule of expected cash collections, by month and in total for the third guarter \begin{tabular}{|l|l|l|l|} \hline Accounts receivable, beginning balance \\ \hline July sales: \\ \hline August sales: \\ \hline September sales: \\ \hline Total cash collections \end{tabular} 2. Prepare a production budget for each of the months July through October 3. Prepare a direct materials purchases budget for synthetic rubber compound, by month and in total, for the third quarter. Alsc prepare a schedule of expected cash disbursements for synthetic rubber compound, by month and in total, for the third quarte \begin{tabular}{|l|l|l|} \hline Accounts payable, beginning balance \\ \hline July purchases: \\ \hline August purchases: \\ \hline September purchases: \\ \hline Total cash disbursements \end{tabular}