Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, 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 55% 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 60% 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 $60,000. Each month $5,000 of this total amount is depreciation expense and the remaining $55,000 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. 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 sheet as of September 30. Req 1 Req 2A Req 2B Req 3 Req 4 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 $ 136,000 $ 136,000 From July sales 0 From August sales 0 From September sales Total cash collections 0 $ 136,000 $ 0 $ 1A 0 $ 136,000 Req 1 Req 2A Req 2B Req 3 Req 4 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 $ 126,000 $ 138,000 $ 132,000 $ 396,000 Add: Desired ending merchandise inventory 27,600 26,400 28,800 Total needs 153,600 164,400 160,800 Less: Beginning merchandise inventory 62,000 27,600 26,400 Required purchases $ 91,600 $ 136,800 $ 134,400 $ 362,800 Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Schedule of Cash Disbursements for Purchases From accounts payable From July purchases From August purchases From September purchases Total cash disbursements July August September Quarter $ 0 0 0 0 $ 0 $ $ 0 $ 0 Req 1 Req 2A Req 2B Req 3 Req 4 Prepare an income statement for the quarter ended September 30. Sales Beech Corporation Income Statement For the Quarter Ended September 30 Cost of goods sold Gross margin Selling and administrative expenses Net operating income 0 0 Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a balance sheet as of September 30. Assets Cash Beech Corporation Balance Sheet September 30 Accounts receivable Inventory Plant and equipment, net Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 0 Total liabilities and stockholders' equity $ 0