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 $ 90,000 136,000 62,000 210,000 Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets $498,000 Liabilities and Stockholders' Equity Accounts payable $ 71,100 327,000 99,900 Common stock Retained earnings $498,000 Total liabilities and stockholders' equity Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, 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 $60,000. Each month $5,000 of this total amount is depreciation expense and the remaining $55,000 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. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a schedule of expected cash collections for July, August, and September. Schedule of Expected Cash Collections Month July August September Quarter From accounts receivable $ 136,000 $ 136,000 From July sales 115,500 94,500 210,000 126,500 103,500 From August sales 230,000 99,000 From September sales 99,000 $ 230,500 $ 219,000 $ 225,500 $ 675,000 Total cash collections Req 1 Req 2A > Complete this question by entering your answers in the tabs below. Req 2B Req 1 Req 2A Req 3 Req 4 Prepare a merchandise purchases budget for July, August, and September. Also comput the quarter ended September 30. Merchandise Purchases Budget July August September Quarte Budgeted cost of goods sold Add: Desired ending merchandise inventory 126,000 $ 138,000 $ 132,000 $ 396, 2$ 27,600 153,600 (62,000) 26,400 164,600 (27,600) 91,600 $ 136,800 $ 134,400 $ 362, 28,800 82, 160,800 (26,400) Total needs 478 Less: Beginning merchandise inventory (116, 2$ Required purchases Complete this question by entering your answers in the tabs below. Req 4 Req 2A Req 2B Req 1 Req 3 Prepare a schedule of expected cash disbursements for merchandise purchases for July, Schedule of Cash Disbursements for Purchases August September Quarter July From accounts payable $ 71,100 $ 71,100 64,120 41,040 From July purchases 27,480 91,600 95,760 40,320 $ 98,580 $ 105,160 $ 136,080 $ 339,820 136,800 From August purchases From September purchases 40,320 Total cash disbursements Complete this question by entering your answers in the tabs below. Req 2B Req 1 Req 2A Req 3 Req 4 Prepare an income statement that computes net operating income for the quarter endec Beech Corporation Income Statement For the Quarter Ended September 30 Cash $ 660,000 (396,000) 264,000 (180,000) Cost of goods sold Gross margin Selling and administrative expenses Net operating income 84,000 Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets 260,180 Cash Accounts receivable Inventory Plant and equipment, net 121,000 28,800 195,000 604,980 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 94,080 327,000 183,900 604,980 Total liabilities and stockholders' equity