Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [LO7-2, LO7-4, LO7-9, LO7-10] 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 of the calendar year. The company's balance sheet as of June 30th is shown below Beech Corporation Balance Sheet June 30 Assets $95,000 142,000 54,000 225,000 Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets 516,000 Liabilities and Stockholders' Equity $86,000 332,000 98,000 Accounts payable Common stock Retained earnings $516,000 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 $360,000, $380,000, $370,000, and 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in $390,000, respectively 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 25% 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 $48,000. Each month $7,000 of this total amount is depreciation expense and the remaining $41,000 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. Also compute total cash collections for the quarter ended September 30 Beech Corporation Schedule of Expected Cash Collections Month July August September Quarter From accounts receivable From July sales From August sales From September sales Total cash collections 2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Beech Corporation Merchandise Purchases Budget July Total August September Budgeted cost of goods sold Total needs Required purchases