answer:To answer these questions, let's break down the required information: # 1. Quantity of Gilden Needed for Production First, we calculate the production needs for each month. To do this, we need to consider the sales planned and the maintenance of finished goods inventories equal to 15% of the following month’s sales. **Calculations for Production Needs**: - For July, August, and September, we calculate the units to be produced plus the inventory requirements. **July Production Needs**: - August Sales: 81,000 units - 15% of August Sales: 81,000 * 15% = 12,150 units - Total Needed for July Production and Inventory: 35,500 + 12,150 = 47,650 units **August Production Needs**: - September Sales: 50,000 units - 15% of September Sales: 50,000 * 15% = 7,500 units - Total Needed for August Production and Inventory: 81,000 + 7,500 = 88,500 units **September Production Needs**: - October Sales: 25,500 units - 15% of October Sales: 25,500 * 15% = 3,825 units - Total Needed for September Production and Inventory: 50,000 + 3,825 = 53,825 units Each umbrella requires 4 feet of Gilden. **July Gilden Needed**: 47,650 * 4 = 190,600 feet **August Gilden Needed**: 88,500 * 4 = 354,000 feet **September Gilden Needed**: 53,825 * 4 = 215,300 feet **Ending Inventory for September** (50% of next month’s needs; October Production needs = 25,500 units + 15% of November Sales (1,800 units) = 27,300 units; 27,300 * 4 * 50%) = 54,600 feet. # 4. Total Gilden Needed for Purchase in Q3 **Beginning Inventory for July**: - 84,650 feet - Required at the End of September: 54,600 feet To find out the purchase requirements, we look at the net requirement (production needs plus desired ending inventory minus beginning inventory): - **Total Gilden Required for Production in Q3**: 190,600 + 354,000 + 215,300 = 759,900 feet **Total Gilden Purchase Requirement for Q3**: - Ending inventory of September less Beginning (84,650 - 54,600) = 30,050 feet difference. - So, required purchase for Q3 = 759,900 + 54,600 (desired ending) - 84,650 (beginning) = 729,850 feet. # 5. Cost of Raw Material (Gilden) Purchases for Q3 - Gilden costs 0.60 per foot. - Total Cost for Q3: 729,850 feet * 0.60 = 437,910 # 6. Expected Cash Disbursements for Gilden Purchases in Q3 - Since 50% is paid in the month of purchase and the remainder in the following month: **July Purchases**: - Assume to find July purchases, use the method above tailored to monthly calculation: ((July’s total Gilden needs + 50% of August’s needs) - Beginning July Inventory) * Cost. - For simplification given data, let's allocate it based on the calculated monthly needs: **July Payment**: - Half of July’s Purchases + Half of June’s payable: (50% of July's purchase * 0.60) + 43,890. **August Payment**: - Half of August’s Purchases + Half of July’s Purchases: 50% of (354,000 feet * 0.60) + 50% of (190,600 feet * 0.60). **September Payment**: - Half of September’s Purchases + Half of August’s Purchases: 50% of (215,300 feet * 0.60) + 50% of (354,000 feet * 0.60). **Total Q3 Disbursements** = July Payment + August Payment + September Payment. Given the specific breakdown of Gilden purchases per month is complex due to the simultaneous effects of payments and purchases, the exact monthly disbursements can't be precisely calculated without clearer monthly purchase values based on the adjusted monthly calculations. Therefore, for detailed Accuracy, the methodology shared should be followed under the assumptions for each month, considering the pattern: Each month involves paying 50% of the current month’s purchases plus 50% of the previous month's unpaid balance. Calculations will require adjusting the initial approach provided to meticulously account for the monthly beginning and ending inventory needs for a precise monthly purchase figure.

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