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 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 $ 83,000 126,000 69, 750 220,000 $ 498,750 $81,000 348,000 69,750 $ 498,750 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $310,000, $330,000, $320,000, and $340,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 45% in the month of sale and 55% 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 20% of the cost of next month's sales. The cost of goods sold is 75% of sales. The 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. 4. Monthly selling and administrative expenses are always $58,000. Each month $6,000 of this total amount is depreciation expense and the remaining $52,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30. --- Required information X Answer is complete but not entirely correct. Part 2 of 2 Complete this question by entering your answers in the tabs below. 0.2 points Reqa Reg 1 Req 2B Req3 Reg 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Merchandise Purchases Budget July August September Quarter Budgeted cost of goods sold S232 500$ 247.500 240,000 $ 720,000 Add: Desired ending merchandise inventory 49,500 48,000 51,000 51.000 Total needs 282,000 295,500 291,000 771.000 Less: Beginning merchandise inventory 46,500 X 49,500 48.000 46.500 X Required purchases $ 235,500 XS 246,000S 243,000 $724,500 X MC Noyt 5 Required information Answer is complete but not entirely correct. Pan 2012 Part 2 of 2 Complete this question by entering your answers in the tabs below. 0.2 points Req1 Reg 2A Reg 2B Reg 3 Reg 4 Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September Schedule of Cash Disbursements for Purchases July August September Quarter From accounts payable s 81,000$ 0 s 0$ 81,000 From July purchases 70,650 $ 164,850 X 0 235,500 From August purchases 0 73 800 172,200 246,000 From September purchases 00 72,900 72.900 Total cash disbursements $ 151,650 $ 238,650 $ 245,100 $ 635.400 Required information Part 2 of 2 Balance Sheet September 30 Assets S 02 points 143,950 X 208,000 X Cash Accounts receivable Inventory Plant and equipment, net 76,500 X 202,000 630 450 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings s 146 700 X 348 000 135.750 Total liabilities and stockholders' equity S630.450
