Question
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 | $ 90,000 | |||||||||||
Accounts receivable | 136,000 | |||||||||||
Inventory | 62,000 | |||||||||||
Plant and equipment, net of depreciation | 210,000 | |||||||||||
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Total assets | $ 498,000 | |||||||||||
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Liabilities and Stockholders Equity | ||||||||||||
Accounts payable | $ 71,100 | |||||||||||
Common stock | 327,000 | |||||||||||
Retained earnings | 99,900 | |||||||||||
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Total liabilities and stockholders equity | $ 498,000 | |||||||||||
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1. | Required:
Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.
2. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.
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3. | Prepare an income statement for the quarter ended September 30.
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