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 $ 95,000 142,000 54,000 225,000 $ 516,000 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 $ 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 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 comnan nave for A /of its merchandise nurchases in the month of the purchase and the 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. 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. 3. Prepare an income statement that computes net operating income 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 Reg 3 Reg 4 Prepare a schedule of expected cash collections for July, August, and September. Quarter $ 142,000 Schedule of Expected Cash Collections Month July August September From accounts receivable $ 142,000 From July sales 126,000 234,000 From August sales 133,000 247,000 From September sales 129,500 Total cash collections $ 268,000 $ 367,000 $ 376,500 360,000 380,000 129,500 $1,011,500 Req 1 Req 2A Req 2B Req3 Req 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchase quarter ended September 30. September Quarter Merchandise Purchases Budget July August udgeted sales dd: Desired ending merchandise inventory 57,000 55,500 otal needs ess: Beginning merchandise inventory 54,000 57,000 equired purchases $ 219,000 $ 226,500 58,500 57,000 54,000 55,500 $ 225,000 Req 1 Req 2A Req 2B Req3 Req 4 Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Quarter 0 Schedule of Cash Disbursements for Purchases July August September From accounts receivable From July purchases 87,600 131,400 From August purchases 90,600 135,900 From September purchases 90,000 Total cash disbursements $ 87,600 $ 222,000 $ 225,900 219,000 226,500 90,000 $ 535,500