Problem 9-17 Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet LO2] Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of the calendar year. The company's balance sheet as of June 30 is shown below COLERATIN CORFCRATION Balance Sheet Assets Cash ccounts receivable Inventory Plant and equipment, net of depreciation 82, 000 128, 000 54, 000 220, 000 Total assets 3 181, 000 Liabilities and Shareholders' Equity Accounts payable Comon sharee Retained earnings $ 63, 000 320, CO0 101, 000 Total liabilities and shareholders' equity 3 181, 000 Colerain's managers have made the following aclclitional assumptions andl estimates: a. Estimated sales for July. August, September, and October will be $210,000, $230,000, $220,000, and $240,000, respectively b. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July C. Each month's ending inventory must equal 30% of the cost of next month's sales. The cost of goods sold is 65% of sales. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All of the accounts payable at June 30 will be paid in July and the remaining $62,000 relates to expenses that are paid in the month they are incurred. does not plan to issue any common shares or repurchase its own shares during the quarter ended September 30 d. Monthly selling and administrative expenses are always $67,000. Each month, $5,000 of this total amount is depreciation expense e. The company does not plan to borrow money or pay or declare diviclends during the quarter encled September 30. The company 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 August September Quarter From accounts receivable Sales on account August September Total cash collections 3. Prepare an income statement for the quarter ended September 30. (Do not leave any empty spaces, input a 0 wherever it is required.) Answer is not complete. COLERAIN CORPORATION Income Statement For the Quarter Ended September 30 Commissions Gross margin Commissions Operating income Net income 4. Prepare a balance sheet as of September 30 & Answer is not complete. COLERAIN CORPORATION Balance Sheet September 30 Assets Purchases Accounts payable Administrative expenses Purchases Administrative expenses Other expenses Total assets Liabilities and Shareholders' Equity Administrative expenses Accounts receivable Administrative expenses Administrative expenses Accounts payable Total liabilities and shareholders equity