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Required information The following information applies to the questions displayed below Beech Corporation is a merchandlsing company that is preparing a master budget for the

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Required information The following information applies to the questions displayed below Beech Corporation is a merchandlsing 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 93,000 127,000 45,000 219,000 $ 484,000 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 80,000 330,000 74,000 484,000 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $300,000, $320,000, $310,000, and $330,000, respectively 2 All sales are on credit and all credit sales are collected. Each month's credit sales are collected 4S% in the month of sale and SS 3. Each month's ending inventory must equal 15% of the cost of next month's sales. The cost of goods sold is 60% of sales. The 4. Monthly selling and administrative expenses are always $56.000, Each month $6,000 of this total amount is depreciation expense 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company in the month following the sale. All of the accounts receivable at June 30 will be collected in July company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July and the remaining $50,000 relates to expenses that are paid in the month they are incurred. does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. Required

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