Hi there,

This is Managerial Accounting, Garrison, 15th edition. Chapter 8. The answers that are completed are correct.

I'm hoping someone can tell me how to get the answers. It's due in fifteen minutes, so there's no hope of me getting it done before the deadline, but I do need to know HOW to do it.

For each kind of data, I'd like to know the 'formula' of how to calculate it.

Thank you.

Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $320,000, $340,000, $330,000, and $350,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's 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 month's ending inventory must equal 25% of the cost of next month's sales. The cost of goods sold is 70% 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 $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 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. 1 Schedule of Expected Cash Collections Month July August September From accounts receivable Quarter $ 125,000 From July sales 320,000 From August sales 340,000 From September sales 115,500 $ Total cash collections 237,000 $ 327,000 $ 336,500 $ 900,500 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Merchandise Purchases Budget July August September 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. Schedule of Cash Disbursements for Purchases July August September From accounts payable Total $ 82,000 From July purchases 0 From August purchases 0 From September purchases Total cash disbursements 0 $ 82,000 $ 0 $ 0 $ 82,000 3. Prepare an income statement for the quarter ended September 30. 2 Beech Corporation Income Statement For the Quarter Ended September 30 0 0 $ 0 4. Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets $ Total assets 0 $ 0 Liabilities and Stockholders' Equity Total liabilities and stockholders' equity rev: 09_17_2014_QC_54310 References eBook & Resources Worksheet Learning Objective: 08-02 Prepare a sales budget, including a schedule of expected cash collections. Exercise 8-12 Learning Objective: 08-04 Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials. Difficulty: 1 Easy Learning Objective: 08-10 Prepare a budgeted balance sheet. Learning Objective: 08-09 Prepare a budgeted income statement. Check my work 3 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $320,000, $340,000, $330,000, and $350,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 45% in 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 15% of the cost of next month's sales. The cost of goods sold is 70% 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 $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 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. Schedule of Expected Cash Collections Month July August September From accounts receivable Quarter $ 0 From July sales 0 From August sales 0 From September sales Total cash collections 0 $ 0 $ 0 $ 0 $ 0 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Merchandise Purchases Budget July August September 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. 4 Schedule of Cash Disbursements for Purchases July August September From accounts payable Total $ 0 From July purchases 0 From August purchases 0 From September purchases Total cash disbursements 0 $ 0 $ 0 $ 0 $ 0 3. Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 0 0 $ 0 4. Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets $ Total assets 0 $ 0 Liabilities and Stockholders' Equity Total liabilities and stockholders' equity Garrison 15e Recheck 2015-01-19, 05_15_2015_QC_CS-15886 References eBook & Resources 5