{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T17:10:17-04:00", "answer_date": "2024-05-25 17:10:17", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1698576", "url": "\/study-help\/questions\/the-following-information-applies-to-the-questions-displayed-below-beech-1698576", "question_creation_date_js": "2024-05-25T17:10:17-04:00", "question_creation_date": "May 25, 2024 05:10 PM", "meta_title": "[Solved] [The following information applies to the | SolutionInn", "meta_description": "Answer of - [The following information applies to the questions displayed below] Beech Corporation is a merchandising company that | SolutionInn", "meta_keywords": "information,applies,questions,displayed,below,beech,corporation,merchandising,company,preparing,master,budget", "question_title_h1": " [The following information applies to the questions displayed below] Beech Corporation is a merchandising company that is preparing a master budget for the third", "question_title": " [The following information applies to the questions displayed below] Beech Corporation", "question_title_for_js_snippet": " 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 Assets Cash Beech Corporation Balance Sheet June 30 Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 76,000 137,000 86,100 230,000 $529,100 $91,000 312,000 126,100 $529,100 Beech's managers have made the following additional assumptions and estimates 1 Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, 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 20 of the cost of next month's sales The cost of goods sold is 70 of sales The company pays for 30 of its merchandise purchases in the month of the purchase and the remaining 70 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 $58,000 Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 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 1 Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, 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 20 of the cost of next month's sales The cost of goods sold is 70 of sales The company pays for 30 of its merchandise purchases in the month of the purchase and the remaining 70 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 $58,000 Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 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 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 Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a schedule of expected cash collections for July, August, and September Schedule of Expected Cash Collections From July sales From August sales From September sales Total cash collections Month Quarter July August September $ 0 0 0 0 0 $ IA 0 $ 0 $ GA Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a merchandise purchases budget for July, August, and September Also compute total merchandise purchases for the quarter ended September 30 Total needs Required purchases Merchandise Purchases Budget July August September Quarter Req 1 Req 2A Req 2B Req 3 Req 4 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 $ 0 From July purchases From August purchases 0 From September purchases Total cash disbursements 0 $ $ 0 $ 0 $ 0 Req 2A Req 3 Req 1 Req 2A Req 2B Req 3 Req 4 Prepare an income statement for the quarter ended September 30 Beech Corporation Income Statement For the Quarter Ended September 30 0 0 Req 2B Req 4 Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a balance sheet as of September 30 Beech Corporation Assets Balance Sheet September 30 Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity $", "question_description": "\"image\"image\"image\"image\"image\"image\"image", "transcribed_text": "[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: Assets Cash Beech Corporation Balance Sheet: June 30 Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 76,000 137,000 86,100 230,000 $529,100 $91,000 312,000 126,100 $529,100 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, 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 20% of the cost of next month's sales. The cost of goods sold is 70% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% 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 $58,000 Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 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 1. Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, 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 20% of the cost of next month's sales. The cost of goods sold is 70% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% 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 $58,000. Each month $8,000 of this total amount is depreciation expense and the remaining $50,000 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. 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. Req 1 Req 2A- Req 2B Req 3 Req 4 Prepare a schedule of expected cash collections for July, August, and September. Schedule of Expected Cash Collections From July sales From August sales From September sales Total cash collections Month Quarter July August September $ 0 0 0 0 0 $ IA 0 $ 0 $ GA Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Total needs Required purchases Merchandise Purchases Budget July August September Quarter Req 1 Req 2A Req 2B Req 3. Req 4 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 $ 0 From July purchases From August purchases 0 From September purchases Total cash disbursements 0 $ $ 0 $ 0 $ 0 < Req 2A Req 3 > Req 1 Req 2A Req 2B Req 3 Req 4 Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 0 0 < Req 2B Req 4 > Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a balance sheet as of September 30. Beech Corporation Assets Balance Sheet September 30 Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity $", "related_book": { "title": "Managerial Accounting", "isbn": "0073022853, 978-0073022857", "edition": "7th Edition", "authors": "Ronald W Hilton", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/631ee23378937_238.jpg", "uri": "\/textbooks\/managerial-accounting-7th-edition-238", "see_more_uri": "" }, "free_related_book": { "isbn": "1617294632", "uri": "\/textbooks\/natural-language-processing-in-action-understanding-analyzing-and-generating-text-with-python-1st-edition-9781617294631", "name": "Natural Language Processing In Action Understanding Analyzing And Generating Text With Python", "edition": "1st Edition" }, "question_posted": "2024-05-25 17:10:17", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/bruno-corp-has-decided-to-expand-its-operations-the-bookkeeper", "description": "Bruno Corp. has decided to expand its operations. 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Discuss the breadth and depth implications of the following retailers discussed in this chapter: (a)...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/cvp-margin-of-safety-farmer-ned-wants-to-cash-in-1698575", "next": "\/study-help\/questions\/pr-72b-lifo-perpetual-inventory-obj-2-3-the-1698577" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": " [The following information applies to the questions displayed below] Beech Corporation", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/the-following-information-applies-to-the-questions-displayed-below-beech-1698576" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }