Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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. The comp balance sheet as of June 30 th is shown below: Check my work mode: This shows whet is correct or incorrect for the work you hove completed so fot. It does not indicete complotion. Beech's managers made the following additional assumptions and estimates: 1. Fistimated sales for July. Aupust, September, and October will be $270,000,5230,000,$220,000, and $2,40,000, respectively 2 All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the mornth of sale and 65% in the month following the sale. All of the accounts recelvable at June 30 will be collected in July. 3. Each month's ending inventory must equal 30% of the cost of next month's soles. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandse 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 seliling and administrative expenses are ahways $60,000. Each morth $5,000 of this total amourt 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 pian 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: Required: 1. Prepare a schedule of expected cash collections for July, August and September. Aiso. compute total cash collections for the quarter ended September 30 . 2.a. Prepare a merchandise purchases budper 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 disbutsements for merchandise purchases for the quarter ended September 30 3. Prepare an income statement for the quarter ended September 30. 4 Prepare a batance stheet as of September 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understand Accounting

Authors: Claude Hitching, Derek Stone

1st Edition

0273018833, 978-0273018834

More Books

Students also viewed these Accounting questions