{The foiio wing information applies to the questions displayed beiow} Beech Corporation is a merchandising company that is preparing a master budget for the third quarter ofthe calendar year. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 3 0 Assets Cash s 75 , 0 0 0 Accounts receivable 140 , 0 0 0 Inventory 66, 500 Plant and equipment, net of depreciation 227,000 Total assets $ 503,500 Liabi lities and Stockho]. den ' Equity Accounts payable S 33, 000 Common stock 311,000 Retained earnings 109,500 Total liabilities and stockholders\" equity $ 503:500 Beech's managers have made the following additional assumptions and estimates: _. . Estimated sales for July, August, September, and October will be $380,000, $400,000, $390,000, and $410,000, 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 15% of the cost of next month's sales. The cost of goods sold is T095 of sales. The company pays for 30% of its merchandise purchases in the month ofthe purchase and the remaining T093 in the month following the purchase. All ofthe accounts payable at June 30 will be paid in July. 4. Monthly selling and administrative expenses are always $52,000. Each month $1000 of this total amount is depreciation expense and the remaining $45,000 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: 'I. Prepare a schedule of expected cash collections for July, August, and September: 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: 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. 0 Answer Is complete but not entlrely correct. Complete thls question by entering your answers In the tabs below. Red 1 Reg ZA Reg 20 Red 3 Red 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Budgeted cost of goods sold 0 $ 266,000 9 $200,000 9 $ 2:3,000 Q $ 319,000 0 Add: Desired ending merchandise inventory 0 60,000 9 50.500 9 01,500 9 615,000 9 Total needs 320.000 0 330.500 0 334,500 6 300,500 6 Less.- Beginning merchandise inventory 0 60.500 0 60,000 9 50,500 0 00,500 0 Required purchases $ 259.500 9 $30,500 9 $ 2:5,000 e s 314,000 9 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 $ 88,000 $ O $ O $ 88,000 From July purchases 77,850 X 181,650 X 259,500 From August purchases 83,550 194,950 278,500 From September purchases 165,850 X 265,200 X 277,500 X 708,550 $ $ Total cash disbursements 331,700 530,400 $ 472,450 1,334,550Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets Cash $ 326,700 X Accounts receivable 214,500 Inventory 61,500 X Plant and equipment, net 206,000 Total assets $ 808,700 Liabilities and Stockholders' Equity Accounts payable V $ 193,200 X Common stock 311,000 Retained earnings 304,500 Total liabilities and stockholders' equity $ 808,700