[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 companys balance sheet as of June 30th is shown below:

Beech Corporation Balance Sheet June 30
Assets
Cash	$ 70,000
Accounts receivable	134,000
Inventory	48,300
Plant and equipment, net of depreciation	212,000
Total assets	$ 464,300
Liabilities and Stockholders Equity
Accounts payable	$ 73,000
Common stock	306,000
Retained earnings	85,300
Total liabilities and stockholders equity	$ 464,300

rev: 05_02_2017_QC_CS-88254

3.

value: 30.00 points

Required information

Beechs managers have made the following additional assumptions and estimates:

1.	Estimated sales for July, August, September, and October will be $230,000, $250,000, $240,000, and $260,000, respectively.
2.	All sales are on credit and all credit sales are collected. Each months credit sales are collected 35% in 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 months ending inventory must equal 30% of the cost of next months 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 $42,000. Each month $7,000 of this total amount is depreciation expense and the remaining $35,000 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.

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 2-b. Beech Corporation Schedule of Cash Disbursements for Purchases July August SeptemberTotal From accounts payable From July purchases From August purchases From September purchases Total cash disbursements Prepare an income statement for the quarter ended September 30 using an absorption income statement format. 3. Beech Corporation Income Statement For the Quarter Ended September 30 4. Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity