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 | $ 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:
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