Water Sport Inc. manufactures a small personal water tube used for children learning to swim. Manag budgets for the third quarter, July through September, and has assembled the following information a. The Marketing Department has estimated sales as follows for the remainder of the year (number c July August September 6,700 5,200 4,200 October November December 3,100 2,700 2,200 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 foll 50% in the month of sale 45% in the month following sale 5% uncollectible The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $161 c. The company maintains finished goods inventories equal to 20% of the following month's sales. July 1 will be 1,340 units. d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compound. To prevent s the inventory of synthetic rubber compound on hand at the end of each month to be equal to 2 production noods. The invento ry of cynthetic rubb

b. All sales are on account. Based on past experience, sales are expected to be co The beginning accounts receivable balance (excluding uncollectible amounts) on c. The company maintains finished goods inventories equal to 20% of the followir July 1 will be 1,340 units. d. Each water tube requires 3 kilograms of synthetic polyisoprene rubber compou the inventory of synthetic rubber compound on hand at the end of each month production needs. The inventory of synthetic rubber compound on hand on Ju e. The synthetic rubber compound costs $4.50 per kilogram. Water Sport pays fo remainder is paid for in the following month. The accounts payable balance fo $12,000 on July 1. Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units prepare a schedule of expected cash collections, by month and in total, for the third quarter