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 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 72,000 128,000 60,900 218.000 $ 478,900 $ 79,000 308,000 91,900 $ 478,900 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $290,000, $310,000, $300,000, and $320,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are 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 $54,000. Each nlonth $5,000 of this total amount is depreciation expense and the remaining $49,000 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. Required: 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. 2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute Required: 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, 2-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. 4. Prepare a balance sheet as of September 30. Req 1 Req 2A Req 2B Req3 Reg 4 Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash coll quarter ended September 30. Schedule of Expected Cash Collections Month August September Quarter July $ 128,000 130,500 $ 128,000 From accounts receivable From July sales From August sales From September sales 139,500 130,500 139,500 135,000 $ 533,000 $ 139,500 Total cash collections 135,000 $ 135,000 258,500 Re Req 2A > Reg 1 Reg 2A Req 2B Req3 Reg 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for quarter ended September 30. Merchandise Purchases Budget July August September Quarter Total needs Required purchases Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 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. Schedule of Cash Disbursements for Purchases July August September Quarter $ 0 From July purchases From August purchases From September purchases 0 Total cash disbursements $ $ s 0 $ 0 0 0 0 Reg 1 Reg 2A Reg 2B Req Reg 4 Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net loss X $ 0 0 0 Required information September su Assets Cash Accounts receivable Inventory Plant and equipment, net $ $ 0 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 0