Inteletec Inc. distributes a new gaming console, called B-box. The following information was gathered to prepare the budget for the third quarter.

?B-Boxes are budgeted to sell for an average price of $180. Unit sales are expected to be as follows:

• June 10,000 B-Boxes
• July 10,500 B-Boxes
• August 10,800 B-Boxes
• September 12,600 B-Boxes
• October 14,600 B-Boxes

Sales are made for cash and on credit. The following collection pattern is used to estimate monthly cash collections:

Cash sales 25%

Credit sales?month of sale 50

Credit sales?month after sale 23

Uncollectible 2

?Total 100%

?The company tries to maintain an inventory of 25% of the following month's sales. The company expects to have 2,500 B-Boxes on hand on June 30. Inteletec pays an average of $120 per B-Box.

?The company pays for 70% of its purchases in the month of purchase and the remaining 30% in the month after purchase.

?The following monthly selling and administrative expenses are planned for the quarter, though advertising will have a one-time $50,000 increase in August to secure orders for the Xmas season. Depreciation for August and September will increase due to additional capital assets to be purchased in August (see below).