Beechs managers have made the following additional assumptions and estimates 1 Estimated sales for July, August, September, and October will be $360,000, $380,000, $370,000, and $390,000, respectively 2 All sales are on credit and all credit sales are collected Each months 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 3 Each months ending inventory must equal 25 of the cost of next months sales The cost of goods sold is 60 of sales The company pays for 40 of its merchandise purchases in the month of the purchase and the remaining 60 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 $48,000 Each month $7,000 of this total amount is depreciation expense and the remaining $41,000 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 Also compute total cash collections for the quarter ended September 30 e of Month August ber Quarter From accounts receivable From July sales From August sales From September sales Total cash collections 0 S O S 2 a Prepare a merchandise purchases budget for July, August, and September Also compute total merc handise purchases for the quarter ended September 30 ust ber Total Budgeted cost of goods sold Total needs Required purchases 2 b Prepare a schedule of expected cash disbursements for merchandise purchases for July, August and September Also compute total cash disbursements for merchandise purchases for the quarter ended September 30 ule August ber T Total From accounts payable From July purchases From August purchases From September purchases Total cash disbursements 3 Prepare an income statement for the quater ended September 30 ration Income Statement For the Quarter Ended ber 30 4 Prepare a balance sheet as of September 30 Balance Sheet nber 30 Assets Total assets Liabilities and Stockholders' Equity

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 07, 2024

Beechs managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $360,000, $380,000, $370,000, and

Beechs managers have made the following additional assumptions and estimates:

1.	Estimated sales for July, August, September, and October will be $360,000, $380,000, $370,000, and $390,000, respectively.
2.	All sales are on credit and all credit sales are collected. Each months 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.
3.	Each months ending inventory must equal 25% of the cost of next months sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% 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 $48,000. Each month $7,000 of this total amount is depreciation expense and the remaining $41,000 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 Also compute total cash collections for the quarter ended September 30. e of Month August ber Quarter From accounts receivable From July sales From August sales From September sales Total cash collections 0 S O S 2-a. Prepare a merchandise purchases budget for July, August, and September Also compute total merc handise purchases for the quarter ended September 30. ust ber Total Budgeted cost of goods sold Total needs Required purchases 2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30. ule August ber T Total From accounts payable From July purchases From August purchases From September purchases Total cash disbursements 3 Prepare an income statement for the quater ended September 30 ration Income Statement For the Quarter Ended ber 30 4. Prepare a balance sheet as of September 30. Balance Sheet nber 30 Assets Total assets Liabilities and Stockholders' Equity