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[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

[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 $ 90,000
Accounts receivable 136,000
Inventory 62,000
Plant and equipment, net of depreciation 210,000

Total assets $ 498,000

Liabilities and Stockholders Equity
Accounts payable $ 71,100
Common stock 327,000
Retained earnings 99,900

Total liabilities and stockholders equity $ 498,000

Required information

Beechs managers have made the following additional assumptions and estimates:
1.

Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, 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 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 $60,000. Each month $5,000 of this total amount is depreciation expense and the remaining $55,000 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:
2-a.

Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

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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.

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4.

Prepare a balance sheet as of September 30.

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**I just need help filling out the blanks. Any help would be appreciated. I've been stuck on this problem for a couple hours and it is getting aggravating. Thanks in advance. I will give a thumbs up for any correct answers.

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