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$[$The following information applies to the questions alisplayed 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 $30$th Is shown below:

Beech's managers made the following additional assumptions and estimates:

EstImated sales for July, August, September, and October will be $$230,000,$$$250,000,$$$240,000,$ and $$260,000,$ respectively.

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 recelvable at June $30$ will be collected in July.

Each month's ending Inventory must equal $30\%$ of the cost of next month's sales. The cost of goods sold is $70\%$ of sales. The

company pays for $40\%$ of its merchandlse 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.

Monthly selling and administrative expenses are always $$42,000.$ Each month $$7,000$ of this total amount is depreclation expense

and the remaining $$35,000$ relates to expenses that are paid in the month they are incurred.

The company does not plan to borrow money or pay or declare dividends durling 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 $30.$