Water Sport inc. manutoctures 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 intormation to assist a The Marketing Department has estimated sales as folkows 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; sales are expected to be colected in the following patternc The beginning accounts recelvable balance (exclading uncollectible amounts) on July 1 will be $162.500. C. The company maintains finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods on July 1 will be 1,400 units. d. Each water tube requires 3 kilograms of synthetic polysoprene rubbei 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 month's production needs. The inventory of synthetic rubber compound on hand on July 1 will be 4,020kilograms I e. The synthebe rubber compound cost5 $3.50 per kilogram. Water Sport pays for 70% of its purchases in the month of purchase; the remainder is pald for in the following month. The accounts payable balance for synthetic rubber compound purchases will be $12,900 on faly 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. 2. Prepare a production budget for each of the months July through October. 3. Prepare a direct materlals purchases budget for synthetic rubber compound, by month and in total, for the third quarter. Also prepate a schedule of expected cash disbursements for synthetic rubber compound, by month and in total, for the third quarter. Water Sport inc. manutoctures 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 intormation to assist a The Marketing Department has estimated sales as folkows 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; sales are expected to be colected in the following patternc The beginning accounts recelvable balance (exclading uncollectible amounts) on July 1 will be $162.500. C. The company maintains finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods on July 1 will be 1,400 units. d. Each water tube requires 3 kilograms of synthetic polysoprene rubbei 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 month's production needs. The inventory of synthetic rubber compound on hand on July 1 will be 4,020kilograms I e. The synthebe rubber compound cost5 $3.50 per kilogram. Water Sport pays for 70% of its purchases in the month of purchase; the remainder is pald for in the following month. The accounts payable balance for synthetic rubber compound purchases will be $12,900 on faly 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. 2. Prepare a production budget for each of the months July through October. 3. Prepare a direct materlals purchases budget for synthetic rubber compound, by month and in total, for the third quarter. Also prepate a schedule of expected cash disbursements for synthetic rubber compound, by month and in total, for the third quarter