Only do Question 4 at the end everything else is right, I provided it for context
Beech Corporation Balance Sheet June 30 Assets Cash Accounts recelvable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 81,000 132,000 56,250 214,000 $ 483,250 $ 75,000 346,000 62,250 $ 483,250 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $250,000, $270,000, $260,000, and $280,000, 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 30% of the cost of next month's sales. The cost of goods sold is 75% 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 $46,000. Each month $5,000 of this total amount is depreciation expense and the remaining $41,000 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. From accounts receivable From July sales From August sales From September sales Total cash collections Schedule of Expected Cash Collections Month July August September $ 132,000 $ 0 $ 0 87,500 162,500 0 94,500 175,500 0 of 91,000 $ 219,500 $ 257,000 $ 266,500 Quarter $ 132,000 250,000 270,000 91,000 $ 743,000 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 Budgeted cost of goods sold $ 187,500 $ 202,500 Add: Desired ending merchandise inventory 60,750 58,500 Total needs 248,250 261,000 Less: Beginning merchandise inventory 56,250 60,750 Required purchases $ 192,000 $ 200,250 September $ 195,000 63,000 258,000 58,500 $ 199,500 Total $ 585,000 63,000 648,000 56,250 $ 591,750 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 Total From accounts payable $ 75,000 0 0 0 $ 75,000 From July purchases 76,800 115,200 0 192,000 From August purchases 0 80,100 120,150 200,250 From September purchases 0 01 79,800 79,800 Total cash disbursements $ 151,800 $ 195,300 $ 199,950 $ 547,050 3. Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 Sales $ 780,000 Cost of goods sold 585,000 Gross margin 195,000 Selling and administrative expenses 138,000 Net operating income 57,000 Interest expense Net income $ 57,000 4. Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets Cash Accounts receivable Inventory Plant and equipment, net Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity
