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 Accounts receivable $75.000 10.000 66.500 222000 $ 508,500 Plant and equipment net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 88,000 11000 109,500 $ 508,500 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July August September, and October will be $380,000 $400.000 $300,000, and $410.000, respectively 2. 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% in the month following the sale. Al 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 70% 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 $52.000. Each month $7.000 of this total amount is depreciation expense and the remaining $45,000 relates to expenses that we 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 is own stock during the quarter onded 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 Schedule of Expected Cash Collections 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, Merchandise Purchases Budget July August September Total Budgeted cost of goods sold Total needs Required purchases 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. Total Schedule of Cash Disbursements for Purchases July August September From accounts payable From July purchases From August purchases From Septembe Total cash disbursements 3. Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30