Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet Exercise $8-12($Algo$)$

Beech's managers made the following additional assumptions and estimates:

Estimated sales for July, August, September, and October will be $$270,000,$$$290,000,$$$280,000,$ and $$300,000,$ respectively.

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 $65\%$ i

the month following the sale. All of the accounts receivable at June $30$ will be collected in July.

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.

Monthly selling and administrative expenses are always $$50,000.$ Each month $$5,000$ of this total amount is depreciation expense

and the remaining $$45,000$ relates to expenses that are paid in the month they are incurred.

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:

Prepare a schedule of expected cash collections for July, August, and September. Also, compute total cash collections for the

quarter ended September $30.$

$2-$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. Also, compute

total cash disbursements for merchandise purchases for the quarter ended September $30.$

Prepare an income statement for the quarter ended September $30.$

Prepare a balance sheet as of September $30.$ Prepare a schedule of expected cash collections for July, August, and September. Also, compute total cash collections for the

quarter ended September $30.$Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for the

quarter ended September $30.$

$[$LO$8-2,$ LO$8-4,$ LO$8-9,$ LO$8-10]$

$[$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

company's balance sheet as of June $30$th is shown below: