Beech's managers have made the foilowing soditonal assumptions and esimates 1. Estimated saies for uly, August, September and October weil be $410,000, $430,000, S420,000, and $440,000, respectvely colected in July in the morth following the sale. All of the accounts receivable at June 30 wll be saies. The company pays for 40% f its merchandise purchases in the month of the purchase common stock or repurchsse its own stock during the 2.Allsales are or credt and aiendt sale in colided Each more s redt salesare olieted 35% inthe ore rare en n ne meth fokon 2. ll sales are on credt and all credt sales are 3.Enth moreni ning metery mvat oqal 30% ef the cost ofmot "ont iles. The cost of pods sold is 70% ofsale. and the remaning 60% n te month folourgte proase. Al of ne accounts pay ature be pad n M. The co pary pays Monthly seling and administrative expenses are aways $58,000. Each month $8,000 of this t are incurred. 5. The company does not plan to borow money or pay or deciane dividends during the quarter ended September 30. The company does not plan to issue any quaner ended September 30 otal amount is depreciation expense and the remaining $50,000 relates to expenses that are paid in the month Required 1. P-paro a sa edue e, expected casn colecens for Jdy, August, and September. Also orpuo tonai cash olections for se quarter ended September 30. 137 000 90 000 430.000 From July sales 280,500 417 000 426,500 1,124 2-a Prepare a merchandise purchases budget for July August, and September Also compute total merchandise purchases for the quanter ended September 30 Desired ending merchandse inventery Required purchases 2-b. Prepare a schedule of expected cash dsbursements for menchandise purchases for July, August, and September, Ailso compute total cash disbursements for merchandse purchases for the quarter ended September 30 From accounts payable From July purchases From Augut purchasers S 91,000 329.900 214 200 357000 Total cash disbursements 222.960 340,740 357 600 921300 3. Prepare an income statement for the quarter ended September 30. For the Quarter Ended September 30 Cent of goods sold 4. Prepare a balance sheet as of September 30 Beech Corp Balance Sheet September 30 Assets Cash Accounts receivable Inventory Plant and equipment, net Total assets Liabilities and Stockholders' Equity Accounts payable stock Retained earnings Total liabilities and stockholders' equity 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 e 30 Assets $ 76,000 Cash Accounts recelvable Inventory Plant and equipment, net of depreciation Totai assets 137000 86,100 230000 $ 529300 Linbilities and Stockholders' Equity Accounts paynble Common stock Retained earnings Total liabiines and stockholders' equity 91000 112,000 126100 $529,100
