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 additional assumptions and estimates:

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

All sales are on credit and all credit sales are collected. Each month's credit sales are collected $35\%$ In the month of sale and $65\%$ 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 $30\%$ of the cost of next month's sales. The cost of goods sold is $70\%$ 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 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 pald 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 during 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 merchandlse purchases for the quarter ended September $30.$

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

Prepare a balance sheet as of September $30.$