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 additlonal assumptions and estimates:

Estlmated sales for July, August, September, and October will be $$230,000,$$$250,000,$$$240,000,$ and $$260,000,$ respectlvely.

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. All of the accounts recelvable at June $30$ will be collected in July.

Each month's ending Inventory must equal $20\%$ of the cost of next month's sales. The cost of goods sold is $70\%$ of sales. The

company pays for $30\%$ of its merchandlse 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 pald in July.

Monthly selling and administrative expenses are always $$42,000.$ Each month $$7,000$ of this total amount is depreclation expense

and the remaining $$35,000$ 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 durling the quarter ended September $30.$ The company

does not plan to issue any common stock or repurchase its own stock durling the quarter ended September $30.$

Required:

Prepare a schedule of expected cash collections for July, August, and September. Also, compute total cash collections for the

quarter ended September $30.$

$2-$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 $30.$

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

Prepare a balance sheet as of September $30.$