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 $ 84,000 Accounts receivable 144,000 Inventory 63,750 Plant and equipment, net of depreciation 223,000 Total assets $ 514,750 Liabilities and Stockholders Equity Accounts payable $ 84,000 Common stock 349,000 Retained earnings 81,750 Total liabilities and stockholders equity $ 514,750 Beechs managers have made the following additional assumptions and estimates Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, respectively All sales are on credit and all credit sales are collected Each months 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 Each months ending inventory must equal 15 of the cost of next months 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 Monthly selling and administrative expenses are always $44,000 Each month $6,000 of this total amount is depreciation 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 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 Schedule of Expected Cash Collections Month July August September Quarter $0 From July sales 0 From August sales 0 From September sales 0 Total cash collections $0 $0 $0 $0

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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

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	$	84,000
Accounts receivable		144,000
Inventory		63,750
Plant and equipment, net of depreciation		223,000
Total assets	$	514,750
Liabilities and Stockholders Equity
Accounts payable	$	84,000
Common stock		349,000
Retained earnings		81,750
Total liabilities and stockholders equity	$	514,750

Beechs managers have made the following additional assumptions and estimates:

Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, respectively.
All sales are on credit and all credit sales are collected. Each months 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.
Each months ending inventory must equal 15% of the cost of next months 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.
Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation 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 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.

Schedule of Expected Cash Collections
	Month
	July	August	September	Quarter
				$0
From July sales				0
From August sales				0
From September sales				0
Total cash collections	$0	$0	$0	$0