SB Exercise 8-12 through Exercise 8-13 (Algo)[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:AssetsCashAccounts receivableInventoryPlant and equipment, net of depreciationTotal assetsLiabilities and Stockholders' EquityAccounts payableCommon stockRetained earningsTotal liabilities and stockholders' equityBeech CorporationBalance SheetJune 30Exercise 8-13 (Algo) Schedules of Expected Cash Collections and Disbursements; Income Statement;Balance Sheet [LO8-2, LO8-4, LO8-9, LO8-10]Beech's managers have made the following additional assumptions and estimates:1. Estimated sales for July, August, September, and October will be $400,000, $420,000, $410,000, and $430,000, 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. Thecompany pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% 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 $56,000. Each month $8,000 of this total amount is depreciation expenseand the remaining $48,000 relates to expenses that are paid in the month they are incurred.5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The companydoes not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.Req 1Required:1. Prepare a schedule of expected cash collections for July, August, and September.2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for thequarter ended September 30.Req 2A2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.3. Prepare an income statement for the quarter ended September 30.4. Prepare a balance sheet as of September 30.Complete this question by entering your answers in the tabs below.$ 86,000138,00075,000229,000$528,000From July salesFrom August salesFrom September sales$90,000351,00087,000$ 528,000Req 2BReq 3JulyReq 4Prepare a schedule of expected cash collections for July, August, and September.Schedule of Expected Cash CollectionsMonthAugust September Quarter$0000A

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equired: Prepare a schedule of expected cash collections for July, August, and September. -a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the uarter ended September 30. b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Prepare an income statement for the quarter ended September 30. Prepare a balance sheet as of September 30.

equired: Prepare a schedule of expected cash collections for July, August, and September. -a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the uarter ended September 30. b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Prepare an income statement for the quarter ended September 30. Prepare a balance sheet as of September 30.

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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