Esped Calendar a Amazon Pandora Lamar Email BlackBoard O Stephen f PandoraLamar Email 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 2. All sales are on creditand all credit sales are collected. Each month's credit sales are collected 45% in $240,000, respectively 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: Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30. 1. Beech Corporation Schedule of Expected Cash Collections Month July S 136,000 August September Quarter From accounts receivable From July sales From August sales From September sales Total cash collections S 136,000 210,000 230,000 99,000 230,500 S 219,000 225,500 675,000 94,500 115,500 03,500 126,500 99,000 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Beech Corporation Merchandise Purchases Budget August September Total July $ 126,000 138,000 $132,000 Budgeted cost of goods sold Add: Desired ending merchandise inventory Total needs Less: Beginning merchandise inventory Required purchases 27,600 26,400 $ 91,600 136,800 134,400 62,000 Esped Calendar a Amazon Pandora Lamar Email BlackBoard O Stephen f PandoraLamar Email 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 2. All sales are on creditand all credit sales are collected. Each month's credit sales are collected 45% in $240,000, respectively 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: Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30. 1. Beech Corporation Schedule of Expected Cash Collections Month July S 136,000 August September Quarter From accounts receivable From July sales From August sales From September sales Total cash collections S 136,000 210,000 230,000 99,000 230,500 S 219,000 225,500 675,000 94,500 115,500 03,500 126,500 99,000 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Beech Corporation Merchandise Purchases Budget August September Total July $ 126,000 138,000 $132,000 Budgeted cost of goods sold Add: Desired ending merchandise inventory Total needs Less: Beginning merchandise inventory Required purchases 27,600 26,400 $ 91,600 136,800 134,400 62,000