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Mia Company manufactures beach umbrellas. The company is now preparing detailed budgets for the third quarter and has

assembled the following information to assist in the budget preparation:

a$.$ The Marketing Department has estimated sales as follows for the remainder of the year $($in units$)$:

The selling price of the beach umbrellas is $$12$ per unit. Sales in June were $45,000$ units.

b$.$ All sales are on account. On the basis of past experience, sales are collected in the following pattern:

in the month of sale

in the month following sale

uncollectible

c$.$ The company maintains finished goods inventories equal to $15\%$ of the following month's sales. This requirement will be met at the

end of June.

d$.$ Each beach umbrella requires $4$ metres of Gilden, a material that is sometimes hard to get. Therefore, the company requires that the

inventory of Gilden on hand at the end of each month be equal to $50\%$ of the following month's production needs. The inventory of

Gilden on hand at the beginning and end of the quarter will be as follows:

June $30,112,000$ metres

September $30,?$ metres

e$.$ Gilden costs $$0\mathrm{.}80$ per metre. One$-$half of a month's purchases of Gilden are paid for in the month of purchase; the remainder are

paid for in the following month. The accounts payable on July $1$ for purchases of Gilden during June will be $$96,000.$

Required:

Prepare a sales budget, by month and in total, for the third quarter. Also, prepare a schedule of expected cash collections, by month and in total, for the third quarter.

$\backslash$table$[[$Mia Company,,$],[,$Sales Budget,,,$],[,$July,August,September,Quarter$],[$Budgeted sales,,,,$]]$

$\backslash$table$[[$Mia Company$],[$Schedule of Expected Cash Collections$],[,$July,August,September,Quarter$],[$Accounts receivable, June $30],[$July sales$],[$August sales$],[$September sales$],[$Total cash collections,$$,$$$,$$$,$$

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