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 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 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

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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:

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. 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.