{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T10:11:00-04:00", "answer_date": "2024-05-26 10:11:00", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1734388", "url": "\/study-help\/questions\/beech-corporation-is-a-merchandising-company-that-is-preparing-a-1734388", "question_creation_date_js": "2024-05-26T10:11:00-04:00", "question_creation_date": "May 26, 2024 10:11 AM", "meta_title": "[Solved] Beech Corporation is a merchandising comp | SolutionInn", "meta_description": "Answer of - Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar y | SolutionInn", "meta_keywords": "beech,corporation,merchandising,company,preparing,master,budget,third,quarter,calendar,year,s", "question_title_h1": " 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", "question_title": " Beech Corporation is a merchandising company that is preparing a master", "question_title_for_js_snippet": "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 Assets Beech Corporation Balance Sheet June 30 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 $ 90,000 136,000 62,000 210,000 $ 498,000 $ 71,100 327,000 99,900 $ 498,000 Beech's managers have made the following additional assumptions and estimates 1 Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, respectively 2 All sales are on credit and all credit sales are collected Each month's credit sales are collected 35 in the month of sale and 65 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 30 of the cost of next month's sales The cost of goods sold is 60 of sales The company pays for 40 of its merchandise purchases in the month of the purchase and the remaining 60 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 $60,000 Each month $5,000 of this total amount is depreciation expense and the remaining $55,000 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 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 3 Prepare an income statement that computes net operating income for the quarter ended September 30 4 Prepare a balance sheet as of September 30 ", "question_description": "\"image", "transcribed_text": "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: Assets Beech Corporation Balance Sheet June 30 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 $ 90,000 136,000 62,000 210,000 $ 498,000 $ 71,100 327,000 99,900 $ 498,000 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the month of sale and 65% 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 30% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% 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 $60,000. Each month $5,000 of this total amount is depreciation expense and the remaining $55,000 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. 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. 3. Prepare an income statement that computes net operating income for the quarter ended September 30. 4. Prepare a balance sheet as of September 30.", "related_book": { "title": "Accounting Principles", "isbn": "978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475", "edition": "9th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/47.jpg", "uri": "\/textbooks\/accounting-principles-9th-edition-47", "see_more_uri": "" }, "free_related_book": { "isbn": "0750704039", "uri": "\/textbooks\/participatory-evaluation-in-education-studies-of-evaluation-use-and-organizational-learning-1st-edition-9780750704038-106420", "name": "Participatory Evaluation In Education Studies Of Evaluation Use And Organizational Learning", "edition": "1st Edition" }, "question_posted": "2024-05-26 10:11:00", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/a-machine-fills-containers-with-a-particular-product-the-standard-132331", "description": "A machine fills containers with a particular product. The standard deviation of filling weights computed from past data is 0.6 ounces. 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