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: Assets Cash Accounts receivable Inventory Req 1 Plant and equipment, net of depreciation Total assets Liabilities and stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Beech Corporation Balance Sheet June 30 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $330,000, $350,000, $340,000, and $360,000, 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 30% 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 $42,000. Each month $6,000 of this total amount is depreciation expense and the remaining $36,000 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. Complete this question by entering your answers in the tabs below. 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. Req 2A Reg 2B Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet $ 94,000 145,000 59,400 222,000 $ 520,400 $ 83,000 331,000 106,400 $ 520,400 Req 3 Reg 4
Required ieformation The following informotion appices to the questiens display be below f Beech Corporation is a merchundsing compary that is preparing a master budget for the third quarter of the colendior yeot The companys balance sheet as of June 30 th is thown beiow Blech's monegers have ivade the followng additional assumptions and estimates 1. Extimoted sales for July August, September, and Ortober will be $330,000,5350,000,$340,000 and $360000, respecterey. 2. At sales ore on credit and al credit iales are collected. Epch montris credit saies oce coliected 355 in the month of sale and 65x in the month following the saie. Al of the accourts receivable of June 30 will be collected in duly 3 Each montit ending vventery must equal 300 of the cost of best montis soles. The cost ef poods sold is 60\% of sales. The the purchate: A af the occountr peyobic at June 30 wai be peid in J hy. 4 Monthly seling and odininistrative expenses are always $42,000 Each morith $6.000 of this total amount as depreciation expense and the remaring 535,000 reletes to expenses thet are pard in the menen they are incured 5 The company does not plan to borrow money or paty or deciere dividends durng the quarter ended September 30 . The compsoy does not plan to aspe any common stock or cepurchate as own siock dfump the quarter ended Septenber 30 Aequired: 1. Prepare a schedule of expected cosh collectione for July. August and September. 2 il Prepere a merchandise porchases budper for Joly. Auguat, ond Septembec Aso compute total merchandse purchases for the quarter ended Septerntiser 30 2b Plepore a schedule of expected cach disbursements for merchandise purchsses for Nly. August, and September 3. Prepare an incorme staterners that compites net eperating income for the querter ended september 30 4. Frepare o balance sheve as of September 30 Cemplate this questien by eaterieg your answers in the tabs belowe. firpain a balence aheet as of September 30. mectien infemetian Beech's manogers have fnade the following additional assumptions and estimates: 1. Estimated sales for July. August. September, and October will be $330,000.5350.000.5340,000,5 and $360,000, respectively 2 All sales are on credit and al credit sales are collected. Each month's credit sales are collected 45% in the month of sale and 55 . the month following the sale. All of the accourts receivable at June 30 will be collected in July. 3. Esch month's ending inventory must equal 202 of the cost of next monthis sales. The cost of goods sold is 600 of sales. The company pays for 30% of its merchandse purchases in the month of the purchase and the remalning 70% in the month foliowing the purchase. Al of the accounts payabie at June 30 will be paid in July 4. Monthly setling and diministrative expenses are always $42.000. Each month 56,000 of this total amount is depreciation expense and the temaing $35.000 relates to expenses thyt are poid 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 qusrter ended September 30 . Requlred: 1. Preparea schedule of expected cash colections for July, August, and September 2-a. Prepare a merchandse 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 disbursetents for merchandise purchases for July, August, and Septernber 3. Prepare an incompe statement for the quarter ended September 30 4. Prepare a bulance sheet as of september 30 . Camplete this question by entering your answers in the tabs belew. Prepare an incerise statement fer the quarter ended Deptember 20. Required ieformation The following informotion appices to the questiens display be below f Beech Corporation is a merchundsing compary that is preparing a master budget for the third quarter of the colendior yeot The companys balance sheet as of June 30 th is thown beiow Blech's monegers have ivade the followng additional assumptions and estimates 1. Extimoted sales for July August, September, and Ortober will be $330,000,5350,000,$340,000 and $360000, respecterey. 2. At sales ore on credit and al credit iales are collected. Epch montris credit saies oce coliected 355 in the month of sale and 65x in the month following the saie. Al of the accourts receivable of June 30 will be collected in duly 3 Each montit ending vventery must equal 300 of the cost of best montis soles. The cost ef poods sold is 60\% of sales. The the purchate: A af the occountr peyobic at June 30 wai be peid in J hy. 4 Monthly seling and odininistrative expenses are always $42,000 Each morith $6.000 of this total amount as depreciation expense and the remaring 535,000 reletes to expenses thet are pard in the menen they are incured 5 The company does not plan to borrow money or paty or deciere dividends durng the quarter ended September 30 . The compsoy does not plan to aspe any common stock or cepurchate as own siock dfump the quarter ended Septenber 30 Aequired: 1. Prepare a schedule of expected cosh collectione for July. August and September. 2 il Prepere a merchandise porchases budper for Joly. Auguat, ond Septembec Aso compute total merchandse purchases for the quarter ended Septerntiser 30 2b Plepore a schedule of expected cach disbursements for merchandise purchsses for Nly. August, and September 3. Prepare an incorme staterners that compites net eperating income for the querter ended september 30 4. Frepare o balance sheve as of September 30 Cemplate this questien by eaterieg your answers in the tabs belowe. firpain a balence aheet as of September 30. mectien infemetian Beech's manogers have fnade the following additional assumptions and estimates: 1. Estimated sales for July. August. September, and October will be $330,000.5350.000.5340,000,5 and $360,000, respectively 2 All sales are on credit and al credit sales are collected. Each month's credit sales are collected 45% in the month of sale and 55 . the month following the sale. All of the accourts receivable at June 30 will be collected in July. 3. Esch month's ending inventory must equal 202 of the cost of next monthis sales. The cost of goods sold is 600 of sales. The company pays for 30% of its merchandse purchases in the month of the purchase and the remalning 70% in the month foliowing the purchase. Al of the accounts payabie at June 30 will be paid in July 4. Monthly setling and diministrative expenses are always $42.000. Each month 56,000 of this total amount is depreciation expense and the temaing $35.000 relates to expenses thyt are poid 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 qusrter ended September 30 . Requlred: 1. Preparea schedule of expected cash colections for July, August, and September 2-a. Prepare a merchandse 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 disbursetents for merchandise purchases for July, August, and Septernber 3. Prepare an incompe statement for the quarter ended September 30 4. Prepare a bulance sheet as of september 30 . Camplete this question by entering your answers in the tabs belew. Prepare an incerise statement fer the quarter ended Deptember 20
