Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet 30 Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets $ 85,000 141,000 83,250 226,000 s535,250 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings s 87,000 350,000 98,250 Total liabilities and stockholders equity s 535,250 Exercise 8-12 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $370,000, $390,000, $380,000, and $400,000, respectively 2. 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 receivable at June 30 will be collected in July. company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following 3. Each month's ending inventory must equal 30% of the cost of next month's sales. The cost of goods sold is 75% of sales. The 4. Monthly selling and administrative expenses are always $50,000. Each month $7,000 of this total amount is depreciation expense 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company the purchase. All of the accounts payable at June 30 will be paid in July. and the remaining $43,000 relates to expenses that are paid in the month they are incurred. does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30 r 30 of e cash 2-b. 3. Prepare an income Req 2A Req 2B Req 3 for July, of E Req 2A > Next >