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

$ 75,000

Accounts receivable

140,000

Inventory

66,500

Plant and equipment, net of depreciation

227,000

Total assets

$ 508,500

Liabilities and Stockholders Equity

Accounts payable

$ 88,000

Common stock

311,000

Retained earnings

109,500

Total liabilities and stockholders equity

$ 508,500

Beechs managers have made the following additional assumptions and estimates:

1.	Estimated sales for July, August, September, and October will be $380,000, $400,000, $390,000, and $410,000, respectively.
2.	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.
3.	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.
4.	Monthly selling and administrative expenses are always $52,000. Each month $7,000 of this total amount is depreciation expense and the remaining $45,000 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 Schedule of Expected Cash Collections Month UI AugustSeptember Quarter From accounts receivable From July sales From August sales From September sales Total cash collections O 140,000 380,000 400,000 136,500 $ 273,000 387,000 396,500 $1,056,500 $140,000$ 133,000 247,000 140,000 260,000 136,500 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30 Merchandise Purchases Budget July August September Total Budgeted cost of goods sold Add: Desired ending merchandise inventory Total needs Less: Beginning merchandise inventory Required purchases