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ControlRequired information Skip to question [ The following information applies to the questions displayed below. ] Beech Corporation is a merchandising company that is preparing
ControlRequired information Skip to question 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 companys balance sheet as of June th is shown below: Beech Corporation Balance Sheet June Assets Cash $ Accounts receivable Inventory Plant and equipment, net of depreciation Total assets $ Liabilities and Stockholders Equity Accounts payable $ Common stock Retained earnings Total liabilities and stockholders equity $ Beechs managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $ $ $ and $ respectively. All sales are on credit and all credit sales are collected. Each months credit sales are collected in the month of sale and in the month following the sale. All of the accounts receivable at June will be collected in July. Each months ending inventory must equal of the cost of next months sales. The cost of goods sold is of sales. The company pays for of its merchandise purchases in the month of the purchase and the remaining in the month following the purchase. All of the accounts payable at June will be paid in July. Monthly selling and administrative expenses are always $ Each month $ of this total amount is depreciation expense and the remaining $ relates to expenses that are paid in the month they are incurred. The company does not plan to borrow money or pay or declare dividends during the quarter ended September The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September Required: Prepare a schedule of expected cash collections for July, August, and September. a Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September b Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Prepare an income statement for the quarter ended September Prepare a balance sheet as of September
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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 companys balance sheet as of June th is shown below:
Beech Corporation
Balance Sheet
June
Assets
Cash $
Accounts receivable
Inventory
Plant and equipment, net of depreciation
Total assets $
Liabilities and Stockholders Equity
Accounts payable $
Common stock
Retained earnings
Total liabilities and stockholders equity $
Beechs managers have made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $ $ $ and $ respectively.
All sales are on credit and all credit sales are collected. Each months credit sales are collected in the month of sale and in the month following the sale. All of the accounts receivable at June will be collected in July.
Each months ending inventory must equal of the cost of next months sales. The cost of goods sold is of sales. The company pays for of its merchandise purchases in the month of the purchase and the remaining in the month following the purchase. All of the accounts payable at June will be paid in July.
Monthly selling and administrative expenses are always $ Each month $ of this total amount is depreciation expense and the remaining $ relates to expenses that are paid in the month they are incurred.
The company does not plan to borrow money or pay or declare dividends during the quarter ended September The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September
Required:
Prepare a schedule of expected cash collections for July, August, and September.
a Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September
b Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.
Prepare an income statement for the quarter ended September
Prepare a balance sheet as of September
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