Beech Corporation is a merchandising company that is preparing a master budget for the third quarter. The company's balance sheet as of June $30$ th is shown below:

Beech's managers made the following additional assumptions and estimates:

Estlmated sales for July, August, September, and October wil be $$340,000,$$$360,000,$$$350,000,$ and $$370,000,$ 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. Alt of the accounts recelvable at june $30$ wil be collected in July.

Each month's ending Inventory must equal $15\%$ of the cost of hext month's sales. The cost of goods sold $1570\%$ 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.

Monthly selling and administrative expenses are always $$44,000.$ Each month $$6,000$ of this total amount is depreclation expense and the remaining $$38,000$ relates to expenses that are paid in the month they are incurred.

The company does not plan to borrow money or pay or declere dvidends 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:

Prepare a schedule of expected cash collections for July. August, and September. Also, compute total cash collectlons 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 merchandlse purchases for the quarter ended September $30.$

Prepare an Income statement for the quarter ended September $30.$