Preview Fle Edit View Co Tools Window Help 10 0 0 4 + Wed Dec 30 6:13 AM - Screen Shot 2020-12-30 at 6.12.24 AM Q Search 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 Total assets Liabilities and Stockholders' Equity Accounts payable Cocomon stock Retained earnings Total liabilities and stockholders' equity $ 80,000 135,000 41,250 211,000 $ 467,250 $ 72,000 305,000 50,250 $ 467,250 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $220,000, $240,000, $230,000, and $250,000, 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 15% 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 $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 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. 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. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30. 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Preview File Edit View Co Tools Window Help + Wed Dec 30 6:13 AM - Screen Shot 2020-12-30 at 6.13.36 AM Q Search 1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30, 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. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30. 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req3 Req 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Merchandise Purchases Budget July August September Quarter Budgeted cost of goods sold s 154,000 $ 168,000 $ 224,000 $546,000 X Add: Desired ending merchandise inventory 25,200 33,600 X 26,250 26,250 Total needs 179,200 201,600 X 250,250 X 572,250 X Less: Beginning merchandise inventory 41.250 25,200 24,150 41,250 Required purchases S 137,950 $ 166,950 $ 163,100 $ 468,000 Preview File Edit View Co Tools Window Help Wed Des 30 6 15 AM LY Screen Shot 2020-12-30 at 6.14.29 AM U Complete this question by entering your answers in the tabs below. Req 1 Req 2A Reg 2B Reg 3 Reg 4 Prepare an income statement for the quarter ended September 30. Beech Corporation Income Statement For the Quarter Ended September 30 Sales Cost of goods sold Gross margin 0 0 $ 0