Milo Company manufactures beach umbrellas. The company ispreparing detailed budgets for the third quarter and has assembledthe following information to assist in the budget preparation: TheMarketing Department has estimated sales as follows for theremainder of the year (in units): July 37,000 October 27,000 August84,000 November 13,500 September 53,000 December 14,000 The sellingprice of the beach umbrellas is $11 per unit. All sales are onaccount. Based on past experience, sales are collected in thefollowing pattern: 30% in the month of sale 65% in the monthfollowing sale 5% uncollectible Sales for June totaled $363,000.The company maintains finished goods inventories equal to 15% ofthe following month’s sales. This requirement will be met at theend of June. Each beach umbrella requires 4 feet of Gilden, amaterial that is sometimes hard to acquire. Therefore, the companyrequires that the ending inventory of Gilden be equal to 50% of thefollowing month’s production needs. The inventory of Gilden on handat the beginning and end of the quarter will be: June 30 88,100feet September 30 ? feet Gilden costs $0.80 per foot. One-half of amonth’s purchases of Gilden is paid for in the month of purchase;the remainder is paid for in the following month. The accountspayable on July 1 for purchases of Gilden during June will be$62,120. Required: 1. Calculate the estimated sales, by month andin total, for the third quarter. 2. Calculate the expected cashcollections, by month and in total, for the third quarter. 3.Calculate the estimated quantity of beach umbrellas that need to beproduced in July, August, September, and October. 4. Calculate thequantity of Gilden (in feet) that needs to be purchased by monthand in total, for the third quarter. 5. Calculate the cost of theraw material (Gilden) purchases by month and in total, for thethird quarter. 6. Calculate the expected cash disbursements for rawmaterial (Gilden) purchases, by month and in total, for the thirdquarter.