Colerain Corporation is a merchandising company that is preparing a profit plan for the third quarter of the calendar year. The companys balance sheet as of June 30 is shown below:

Colerain Corporation Balance Sheet June 30
Assets
Cash	$ 87,000
Accounts receivable	125,000
Inventory	40,950
Plant and equipment, net of depreciation	230,000
Total assets	$ 482,950
Liabilities and Stockholders Equity
Accounts payable	$ 61,700
Common stock	380,000
Retained earnings	41,250
Total liabilities and stockholders equity	$ 482,950

Colerains 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 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 30% of the cost of next months sales. The cost of goods sold is 65% of sales. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% 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 $55,000. Each month $4,000 of this total amount is depreciation expense and the remaining $51,000 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 30th. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

	Schedule of Expected Cash Collections
	July	August	September	Quarter
From accounts receivable	$	$	$	$
From July sales
From August sales
From September sales
Total cash collections	$	$	$	$

2a.	Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30th. (Input all amounts as positive values. Omit the "$" sign in your response.)

Merchandise Purchases Budget
	July	August	September	Total
Budgeted cost of goods sold	$	$	$	$
(Click to select)Add:Deduct: (Click to select)Beginning inventoryEnding inventory
Total needs
(Click to select)Deduct:Add: (Click to select)Ending inventoryBeginning inventory
Required purchases	$	$	$	$

2b.

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 30th. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Schedule of Expected Cash DisbursementsMerchandise Purchases
	July	August	September	Total
From accounts payable	$	$	$	$
For July purchases
For August purchases
For September purchases
Total cash disbursements	$	$	$	$

3.	Prepare an income statement for the quarter ended September 30th. (Input all amounts as positive values except losses which should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Colerain Corporation Income Statement For the Quarter Ended September 30
(Click to select)Net operating income (loss)SalesCost of goods soldInterest expenseSelling and administrative expensesGross marginNet income (loss)	$
(Click to select)Gross marginInterest expenseNet income (loss)Net operating income (loss)Cost of goods soldSelling and administrative expensesSales
(Click to select)Net income (loss)Interest expenseCost of goods soldSalesNet operating income (loss)Selling and administrative expensesGross margin
(Click to select)Net income (loss)Gross marginInterest expenseCost of goods soldNet operating income (loss)SalesSelling and administrative expenses
(Click to select)Net income (loss)Cost of goods soldSelling and administrative expensesSalesNet operating income (loss)Interest expenseGross margin
(Click to select)Gross marginInterest expenseCost of goods soldNet income (loss)Selling and administrative expensesNet operating income (loss)Sales
(Click to select)Selling and administrative expensesNet operating income (loss)Cost of goods soldGross marginNet income (loss)Interest expenseSales	$

4.	Prepare a balance sheet as of September 30th. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

Colerain Corporation Balance Sheet September 30
Assets
(Click to select)Accounts payableNotes payableCapital stockRetained earningsCash	$
(Click to select)Notes payableAccounts payableRetained earningsCapital stockAccounts receivable
(Click to select)Capital stockPlant and equipment, netAccounts payableInventoryRetained earnings
(Click to select)InventoryCapital stockRetained earningsPlant and equipment, netAccounts payable
Total assets	$
Liabilities and Stockholders' Equity
(Click to select)CashAccounts receivableNotes receivableInventoryAccounts payable	$
(Click to select)InventoryCapital stockCashPlant and equipment, netAccounts receivable
(Click to select)CashInventoryPlant and equipment, netRetained earningsAccounts receivable
Total liabilities and stockholders' equity	$