Beechs managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $280,000, $300,000, $290,000, and $310,000, respectively.

2. All sales are on credit and all credit sales are collected. Each months 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 months ending inventory must equal 15% of the cost of next months 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 $52,000. Each month $5,000 of this total amount is depreciation expense and the remaining $47,000 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.

3. Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 0 0 0 4. Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets D Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity 0 (The following information applies to the questions alolayed 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 Born is shown below Beech Corporation Balance Sheet June 30 $ 82,000 09.000 $2,500 217000 $ 480,000 Accounts receivatie Inventory Pantand coomet, niet of depreciation foss Libilities and Stockholde uity Accounts le Common Vock Hunedings Totales and other ty 50,000 342.000 55,500 $ 480,500