EXERCISE 8-13 Schedules of Expected Cash Collections and Disbursements; Income Statement: Balance Sheet (LO2, L04, L09, L010) Refer to the data for Beech Corporation in Exercise 8-12. The company is considering making the following changes to the assumptions underlying its master budget: 1. Each month's credit sales are collected 45% in the month of sale and 55% in the month fol- lowing the sale. 2. Each month's ending inventory must equal 20% of the cost of next month's sales. 3. 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 other information from Exercise 8-12 that is not mentioned above remains the same. Required: Using the new assumptions described above, complete the following requirements: 1. Prepare a schedule of expected cash collections for July August, and September. Also com- pute total cash collections for the quarter ended September 30, 2. 2. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise pur- chases for the quarter ended September 30. 3. Prepare an income statement for the quarter ended September 30. Use the absorption format shown in Schedule 9. 4. Prepare a balance sheet as of September 30. EXERCISE 8-13 Schedules of Expected Cash Collections and Disbursements; Income Statement Balance Sheet (L02, LO4, L09, L010) Refer to the data for Beech Corporation in Exercise 8-12. The company is considering making the following changes to the assumptions underlying its master budget: 1. Each month's credit sales are collected 45% in the month of sale and 55% in the month fol- lowing the sale. 2. Each month's ending inventory must equal 20% of the cost of next month's sales. 3. 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 other information from Exercise 8-12 that is not mentioned above remains the same. Required Using the new assumptions described above, complete the following requirements: 1. Prepare a schedule of expected cash collections for July August, and September. Also com pute total cash collections for the quarter eaded September 30. 2 4. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30, Prepare a schedule of expected cash disbursements for merchandise purchases for July August, and September. Also compute total cash disbursements for merchandise pur 3. Prepare an income statement for the quarter ended September 30. Use the absorption format chases for the quarter ended September 30, shows in Schedule 9. 4 Prepare a balance sheet as of September 30. EXERCISE 8-13 Schedules of Expected Cash Collections and Disbursements; Income Statement: Balance Sheet (LO2, L04, L09, L010) Refer to the data for Beech Corporation in Exercise 8-12. The company is considering making the following changes to the assumptions underlying its master budget: 1. Each month's credit sales are collected 45% in the month of sale and 55% in the month fol- lowing the sale. 2. Each month's ending inventory must equal 20% of the cost of next month's sales. 3. 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 other information from Exercise 8-12 that is not mentioned above remains the same. Required: Using the new assumptions described above, complete the following requirements: 1. Prepare a schedule of expected cash collections for July August, and September. Also com- pute total cash collections for the quarter ended September 30, 2. 2. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise pur- chases for the quarter ended September 30. 3. Prepare an income statement for the quarter ended September 30. Use the absorption format shown in Schedule 9. 4. Prepare a balance sheet as of September 30. EXERCISE 8-13 Schedules of Expected Cash Collections and Disbursements; Income Statement Balance Sheet (L02, LO4, L09, L010) Refer to the data for Beech Corporation in Exercise 8-12. The company is considering making the following changes to the assumptions underlying its master budget: 1. Each month's credit sales are collected 45% in the month of sale and 55% in the month fol- lowing the sale. 2. Each month's ending inventory must equal 20% of the cost of next month's sales. 3. 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 other information from Exercise 8-12 that is not mentioned above remains the same. Required Using the new assumptions described above, complete the following requirements: 1. Prepare a schedule of expected cash collections for July August, and September. Also com pute total cash collections for the quarter eaded September 30. 2 4. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30, Prepare a schedule of expected cash disbursements for merchandise purchases for July August, and September. Also compute total cash disbursements for merchandise pur 3. Prepare an income statement for the quarter ended September 30. Use the absorption format chases for the quarter ended September 30, shows in Schedule 9. 4 Prepare a balance sheet as of September 30
