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

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

Beechs 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 months 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 months ending inventory must equal 30% of the cost of next months 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.

(1) CASH COLLECTIONS SCHEDULE
	July	August	Sept	quarter
From acc Receivable
From July sales
From august sales
from Sept sales
Total Monthly Cash Collection
(2) MERCHANDIZE PURCHASE SCHEDULE
	July	August	Sept	quarter
Budgeted COGS
Desired ending Inv
Total needs
Beginning Inventory (Less)
Required Purchases
(2-b) MERCHANDIZE PAYMENT SCHEDULE
	July	August	Sept	quarter
From account payable
From july purchases
From August purchases
From Sept purchases
Total cash disbursment
(3) INCOME STATEMENT
	July	August	Sept	TOTAL
Estimated Sales
Less: COGS
Gross Profit
Less
Net Profit

4) Prepare Balance sheet as of Sept 30: