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Calculate cash? Calculate Accounts Payable? Please show formulas and calculations in spreasheet

Calculate cash? Calculate Accounts Payable? Please show formulas and calculations in spreasheet

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate cash?

Calculate Accounts Payable?

Please show formulas and calculations in spreasheet 

1. Estimated sales for July, August, September, and October will be $260,000, $280,000, $270,000, and $290,000, 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 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. be paid in July. 4. Monthly selling and administrative expenses are always $48,000. Each month $5,000 of this total amount is depreciation expense and the remaining $43,000 relates to expenses that are paid in the month they of the accounts payable at June 30 will 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 that computes net operating income for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets Cash Accounts receivable 175,500 Inventory 45,500 Plant and equipment, net 200.000 Total assets $ 421,000 Liabilities and Stockholders' Equity Accounts payable Common stock 307,000 Retained earnings 178,500 Total liabilities and stockholders' equity $ 485,500
Transcribed Image Text:1. Estimated sales for July, August, September, and October will be $260,000, $280,000, $270,000, and $290,000, 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 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. be paid in July. 4. Monthly selling and administrative expenses are always $48,000. Each month $5,000 of this total amount is depreciation expense and the remaining $43,000 relates to expenses that are paid in the month they of the accounts payable at June 30 will 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 that computes net operating income for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Reg 3 Reg 4 Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Assets Cash Accounts receivable 175,500 Inventory 45,500 Plant and equipment, net 200.000 Total assets $ 421,000 Liabilities and Stockholders' Equity Accounts payable Common stock 307,000 Retained earnings 178,500 Total liabilities and stockholders' equity $ 485,500
Required information [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: Beech Corporation Balance Sheet June 30 Assets Cash 71,000 Accounts receivable 131,000 45,500 Inventory Plant and equipment, net of depreciation 215,000 Total assets $ 462,500 Liabilities and Stockholders' Equity Accounts payable Common stock 76,000 307,000 79,500 Retained earnings Total liabilities and stockholders' equity $ 462,500
Transcribed Image Text:Required information [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: Beech Corporation Balance Sheet June 30 Assets Cash 71,000 Accounts receivable 131,000 45,500 Inventory Plant and equipment, net of depreciation 215,000 Total assets $ 462,500 Liabilities and Stockholders' Equity Accounts payable Common stock 76,000 307,000 79,500 Retained earnings Total liabilities and stockholders' equity $ 462,500
Expert Solution
Step 1

A cash Budget is a schedule used to calculate the total receipts and total disbursement of cash estimated during a financial and accounting period. A cash budget is consistent with the cash basis of accounting, which states that only cash transactions of a business are recorded. 

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