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Woter Sport inc. manufactures a small personal water tube used for children learning to swim. Management is now preparing detailed budgets for the third quarter,

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Woter 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): The selling price of the water tubes is $50. b. All sales are on account Based on past experience, sales are expected to be collected in the following pattern: The beginning accounts recelvable balance (excluding uncollectible amounts) on July 1 will be $170,000. c. The company maintsins finished goods inventories equal to 20% of the following month's sales. The inventory of finished goods on July 1 will be 1,700 units. d. Each water tube requires 4 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 month's production needs. The inventory of synthetic rubber compound on hand on July 1 will be 6,560 kllograms. e. The synthetic rubber compound costs $3.50 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 $17,400 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 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 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. 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

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