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Beech Corporation Required information [The following information applies to the questions displayed below) Beech Corporation is a merchandising company that is preparing a master budget
Beech Corporation
Required information [The following information applies to the questions displayed below) 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 June 30 Assets Cash $70,000 Accounts receivable 234,000 Inventory 46,300 plant and equipment, net of depreciation 212,000 Total assets $464,300 Liabilities and stockholders' Equity Accounts payable 573,000 Con stock 306,000 Retained earnings 85300 Total Itabilities and stockholders equity 3.464,300 Beech's managers have made the following additional assumptions and estimates Beech's managers have made the following additional assumptions and estimates 1. Estimated sales for July, August September, and October will be $230,000 $250,000 $240,000 and $260.000, respectively 2 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 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. 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 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 $42000. Each month $7.000 of this total amount is depreciation expense and the remaining 535.000 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 dividendu during the quarter ended September 30 The company does not plan to issue any common stock of repurchase its own stock during the quarter ended September 30 Required 1 Prepare a schedule of expected cash collections for July August, and September 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 3. Prepare an income statement for the quarter ended September 30, 4 Prepare a balance sheets of Sentemer Required information 4. Prepare a balance sheet as of September 30. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req2B Req3 Req4 Prepare a schedule of expected cash collections for July, August, and September. Schedule of Expected Cash Collections Month Quarter July August September From accounts receivable $134,000 $ 134,000 From July sales 103,500 126,500 230,000 From August sales 112,500 137,500 250,000 From September sales 108,000 108,000 Total cash collections $ 237,500 $ 239,000 $ 245,500 $ 722,000 Req2A > Required information 4. Prepare a balance sheet as of September 30, Complete this question by entering your answers in the tabs below. Reach Req1 Reg 28 Req3 Req4 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 Quarter Budgeted cost of goods sold $ 161,000 Add Desired ending merchandise inventory 35,000 Total needs 195,000 Less Beginning merchandise Inventory 48,300 Required purchases $ 147,700 C D Required information 4. Prepare a balance sheet as of September 30, Complete this question by entering your answers in the tabs below. Req1 Req 2A Reg 28 Req3 Reg 4 Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September Schedule of Cash Disbursements for Purchases July August September Quarter From accounts payable $ 73,000 $ 13.000 From July purchases 44,310 44,310 From August purchases 0 From September purchases 0 Total cash disbursements 3 1173105 os D $ 17.30 FlexxZA Reny 3 al Can Required information 4. Prepare a balance sheet as of September 30. Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Roq 2B Req3 Reg 4 Prepare an income statement for the quarter ended September 30, Beech Corporation Income Statement For the Quarter Ended September 30 Sales $ 720,000 Cost of goods sold 504,000 Gross margin 216,000 Selling and administrative expenses 126,000 Net operating income 90,000 Required information Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets Cash Accounts receivable Inventory Plant and equipment, net 241,460 132,000 36,400 191,000 $ 600,860 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 119,560 306,000 175,300 Total liabilities and stockholders' equity $ 600,860 Step by Step Solution
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