Required information [The following information applies to the questions displayed below.] Beech Corporation is a mercha

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Required Information The Following Information Applies To The Questions Displayed Below Beech Corporation Is A Mercha 1 (131.64 KiB) Viewed 35 times

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: Assets Cash Accounts receivable Inventory Beech Corporation Balance Sheet June 30 Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 74,000 143,000 73,500 224,000 $ 514,500 $ 85,000 310,000 119,500 $ 514,500 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $350,000, $370,000, $360,000, and $380,000, 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 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 $46,000. Each month $7,000 of this total amount is depreciation expense and the remaining $39,000 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. This is a great "review" problem that allows you to prepare several budgets & schedules that are part of a company's master budget. You will start with the sales budget (including cash collections) and continue through to the budget income statement and balance sheet.

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 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. Req 1 Req 2A Req 2B From July sales From August sales. From September sales Total cash collections Req 3 Prepare a schedule of expected cash collections for July, August, and September. Schedule of Expected Cash Collections Month August September Quarter July Req 4 < Reg 1 Req 2A >

Req 1 Total needs Req 2A Required purchases Req 2B Req 3 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Req 4 Merchandise Purchases Budget July < Req 1 August September Quarter Req 2B >

Req 1 Req 2A Req 2B From July purchases From August purchases From September purchases Total cash disbursements Req 3 Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Schedule of Cash Disbursements for Purchases July Req 4 August September Quarter < Req 2A Req 3 >

Req 1 Req 2A Req 2B Req 3 Beech Corporation Income Statement For the Quarter Ended September 30 Prepare an income statement that computes net operating income for the quarter ended September 30. Req 4 < Req 2B Req 4 >

Req 1 Req 2A Assets Req 2B Prepare a balance sheet as of September 30. Beech Corporation Balance Sheet September 30 Total assets Liabilities and Stockholders' Equity Req 3 Req 4