Chapter 8 Homework iSavedHelpSave & ExitSubmitCheck my work3.....!Required informationRequired: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 thequarter 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 that computes net operating income for the quarter ended September 30.4. Prepare a balance sheet as of September 30.SkippedComplete this question by entering your answers in the tabs below.Req 1Req 2AReq 2BReq 3Req ATPrepare a balance sheet as of September 30.Beech CorporationBalance SheetSeptember 30AssetsTotal assets< Prev3 of 4Next >McGrawHilli%24 [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 calendaryear. The company's balance sheet as of June 30th is shown below:Beech CorporationBalance SheetJune 30Assets$ 90,000136,00062,000CashAccounts receivableInventoryPlant and equipment, net of depreciation210,000Total assets$498,000Liabilities and Stockholders' EquityAccounts payable$ 71,100327,00099,900Common stockRetained earnings$498,000Total liabilities and stockholders' equityBeech's 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 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. Thecompany pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month followingthe purchase. All of the accounts payable at June 30 will be paid in July.4. Monthly selling and administrative expenses are always $60,00O. Each month $5,000 of this total amount is depreciation expenseand 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 companydoes not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Schedule of expected cash collections from customers shows the budgeted cash collections on sales…

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 $ 90,000 136,000 Cash Accounts receivable 62,000 Inventory Plant and equipment, net of depreciation 210,000 Total assets $498,000 Liabilities and Stockholders' Equity $ 71,100 327,000 99,900 Accounts payable Common stock Retained earnings $498,000 Total liabilities and stockholders' equity eech's 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 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 $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.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q