{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 Cash Accounts receivable Inventory Plant and equipment, net of depreciation $ 92,000 130,000 48,600 216,000 Total assets $ 406,600 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 77,000 329,000 B0,600 Total liabilities and stockholders' equity $ 486.600 value 30.00 points Beech's managers have made the following additional assumptions and estimates: 1. 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% 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 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. 4. 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. 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 $ 130,000 $ 130,000 From July sales 94,500 175,500 270.000 From August sales 101,500 188,500 290,000 From September sales 98.000 98.000 Total cash collections $ 224,500 $ 277,000 $ 286,500 $ 788.000 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 August September Total Budgeted cost of goods sold $ 162,000 $174.000 $ 168,000 $504,000 Add: Desired ending merchandise inventory 87,000 84,000 90,000 90,000 Total needs 249,000 258,000 258,000 765,000 Less: Beginning merchandise inventory 48,600 87,000 219.600 Required purchases $ 200,400 $ 171,000 $174,000 $545,400 84,000 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. Beech Corporation Schedule of Cash Disbursements for Purchases July August September Total From accounts payable $ 77,000 $ 77,000 From July purchases 80,160 120.240 200,400 From August purchases 68,400 102.600 171.000 From September purchases 69,600 69.600 Total cash disbursements $ 157,160 $ 188,640 $ 172 200 $ 518,000 $ $ 3. Prepare an income statement that computes net operating income for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 Sales $ 840,000 Cost of goods sold 522,000 Gross margin 318,000 Selling and administrative expenses 150,000 Net operating income 168,000 4. Prepare a balance sheet as of September 30 Beech Corporation Balance Sheet September 30 Assets Cash Accounts receivable Inventory Plant and equipment, net $ 0 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity | s S 0