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 Beech Corporation Balance Sheet June 30 AssetsS $ 76,000 Cash 137,000 86,100 Plant and equipment, net of depreciation 230,000 $ 529,100 Total assets Llabllities and Stockholders Equity S 91000 Accounts payable Common stock Retained earnings 312,000 126,100 $ 529,100 Total llabilties and stockholders' equity value: 1.00 points Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July August, September, and October will be $410,000, $430,000, 2. All sales are on credit and all credit sales are collected. Each month's credit sales are $420,000, and $440,000, respectively. collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 70% of sales. 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 of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always S58,000. Each month S8,000 of this total amount is depreciation expense and the remaining S50,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30