Refer to the data for Beech Corporation in Exercise 8€“12. The company is considering making the following changes to the assumptions underlying its master budget:
In Exercise 8€“12 Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company€™s balance sheet as of June 30th is shown below:

1. Each month€™s credit sales are collected 45% in the month of sale and 55% in the month following the sale.
2. Each month€™s ending inventory must equal 20% of the cost of next month€™s sales.
3. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All other information from Exercise 8€“12 that is not mentioned above remains the same.

Required:
Using the new assumptions described above, complete the following requirements:
1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.
2. a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.
b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.
3. Prepare an income statement for the quarter ended September 30. Use the absorption format shown in Schedule 9.
4. Prepare a balance sheet as of September30.

Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation $90,000 136,000 62,000 210,000 Liabilities and Stockholders' Equity ..$71,100 327,000 99,900 Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity . $498,000