! Required information Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-9, LO8-10] [The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that is preparing a master budget for the third quarter. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock $ 95,000 142,000 54,000 225,000 $ 516,000 $ 86,000 332,000 98,000 Retained earnings Total liabilities and stockholders' equity $ 516,000 Exercise 8-12 (Algo) Beech's managers made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $360,000, $380,000, $370,000, and $390,000, 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 60% 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 $48,000. Each month $7,000 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. 2-a. Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for the quarter ended September 30. 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. 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for the quarter ended September 30. Budgeted cost of goods sold Merchandise Purchases Budget July August September Quarter $ 216,000 $228,000 57,000 55,500 273,000 283,500 54,000 $222,000 $ 666,000 58,500 280,500 54,000 Add: Desired ending merchandise inventory Total needs Less: Beginning merchandise inventory Required purchases $ 219,000 $226,500 $225,000 $670,500 < Required 1 Required 2B > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 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 Quarter From accounts payable 0 $ 0 $ 0 $ 0 From July purchases 219,000 0 (219,000) From August purchases 0 0 225,500 (225,500) From September purchases 0 0 0 0 Total cash disbursements $ 0 $ 219,000 $225,500 $ (444,500) < Required 2A Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 0 $ 0 < Required 2B Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Prepare a balance sheet as of September 30. Assets Beech Corporation Balance Sheet September 30 Total assets Liabilities and Stockholders' Equity $ Total liabilities and stockholders' equity $ 0 < Required 3 Required 4 >