! Required information [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 of the calendar year. 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 Retained earnings Total liabilities and stockholders' equity $ 95,000 142,000 54,000 225,000 $ 516,000 $ 86,000 332,000 98,000 516,000 Beech's managers have 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 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 60% 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 $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. Reg 1 Req 2A Req 2B Req3 Reg 4 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 $ 216,000 $ 228,000 Add: Desired ending merchandise inventory 34,200 33,300 Total needs 250,200 261,300 Less: Beginning merchandise inventory 54,000 34,200 Required purchases $ 196,200 $ 227,100 September $ 222,000 35,100 257,100 33,300 $ 223,800 Quarter $ 666,000 35,100 701,100 54,000 $ 647,100 Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B Req3 Reg 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 From accounts payable $ 86,000 0 $ 0 From July purchases 58,860 137,340 0 From August purchases 068,130 158,970 From September purchases 0 67,140 $ $ Total cash disbursements 144,860 205,470 $ 226,110 Quarter $ 86,000 196,200 227,100 67,140 $ 576,440 Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Reg 3 Reg 4 Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 $ Sales 1,110,000 Cost of goods sold (666,000) Gross margin 444,000 Selling and administrative (144,000) expenses Net operating income 300,000 Interest expense 0 Net income $ 300,000 Reg 1 Reg 2A Reg 2B Reg 3 Req 4 Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets Cash Accounts receivable Inventory 0 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $