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 1 abilities and stockholders' equity $ 83,000 126,000 69,750 220,000 $ 498,750 $ 81,000 348,000 69.750 493,750 Beech's managers have made the following additional assumptions and estimates 1 Estimated sales for July, August, September, and October will be $310,000, 5330,000, $320,000, and $340,000, 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 20% of the cost of next month's sales. The cost of goods sold is 75% 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 4. Monthly selling and administrative expenses are always $58.000. Each month $6.00 for this total amount is depreciation expense and the remaining $52,000 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 2a 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, Required information Reg 1 Reg 2A Reg 2B Req3 Req 4 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 Month July August September . Quarter From July sales From August sales From September sales Total cash collections Reg 21 > Required information Reg 1 Reg 2A, Req 2B Req3 Reg 4 Prepare a marchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Morchandise Purchases Budget July August September Quarter Total needs Required purchases Required information Reg 1 Reg 2A R9 28 Reg 3 Req4 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 July purchases From August purchases From September purchases Total cash disbursements Required information Reg 1 Req 2A Req 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 Required information Prepare a balance sheet as of September 30, Beech Corporation Balance Sheet September 30 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity
