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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	$ 75,000
Accounts receivable	140,000
Inventory	66,500
Plant and equipment, net of depreciation	227,000
Total assets	$ 508,500
Liabilities and Stockholders Equity
Accounts payable	$ 88,000
Common stock	311,000
Retained earnings	109,500
Total liabilities and stockholders equity	$ 508,500

Beech's managers have made the following additional assumptions and estmates: 1. Estimated sales for July, August, September, and October will be 2. All sales are on credit and all credit sales are collected. Each month's $380,000, $400,000, $390,000, and $410,000, respectively 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 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 S7,000 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 ssue 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 Schedule of Expected Cash Collections Month July August Se From accounts receivable From July sales rom 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 Jul Se r Total Budgeted cost of goods sold Total needs