Beech Corporation is a merchandising company that is preparing amaster budget for the third quarter of the calendar year. Thecompany’s balance sheet as of June 30th is shown below:

Beech Corporation
Balance Sheet
June 30
Assets
Cash	$	84,000
Accounts receivable		144,000
Inventory		63,750
Plant and equipment, net of depreciation		223,000
Total assets	$	514,750
Liabilities and Stockholders’Equity
Accounts payable	$	84,000
Common stock		349,000
Retained earnings		81,750
Total liabilities and stockholders’ equity	$	514,750

Beech’s managers have made the following additional assumptionsand estimates:

1. Estimated sales for July, August, September, and October will be$340,000, $360,000, $350,000, and $370,000, respectively.

2. All sales are on credit and all credit sales are collected. Eachmonth’s credit sales are collected 35% in the month of sale and 65%in the month following the sale. All of the accounts receivable atJune 30 will be collected in July.

3. Each month’s ending inventory must equal 25% of the cost of nextmonth’s sales. The cost of goods sold is 75% of sales. The companypays for 40% of its merchandise purchases in the month of thepurchase 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 $44,000.Each month $6,000 of this total amount is depreciation expense andthe remaining $38,000 relates to expenses that are paid in themonth they are incurred.

5. The company does not plan to borrow money or pay or declaredividends during the quarter ended September 30. The company doesnot plan to issue any common stock or repurchase its own stockduring 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 thequarter ended September 30.

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 formerchandise purchases for July, August, and September. Also computetotal cash disbursements for merchandise purchases for the quarterended September 30.

3. Prepare an income statement for the quarter ended September30.

4. Prepare a balance sheet as of September 30.

Complete this question by entering your answers in thetabs below.

Prepare a schedule of expected cash collections for July,August, and September. Also compute total cash collections for thequarter ended September 30.

	Schedule of Expected CashCollections Month July August September Quarter $0 From July sales 0 From August sales 0 From September sales 0 Total cash collections $0 $0 $0 $0

Req 2A

Prepare a merchandise purchases budget for July, August, andSeptember. Also compute total merchandise purchases for the quarterended September 30.

	Merchandise Purchases Budget July August September Quarter Total needs Required purchases

Req 2B

Prepare a schedule of expected cash disbursements formerchandise purchases for July, August, and September. Also computetotal cash disbursements for merchandise purchases for the quarterended September 30.

	Schedule of Cash Disbursements forPurchases July August September Quarter $0 From July purchases 0 From August purchases 0 From September purchases 0 Total cashdisbursements $0 $0 $0 $0

Req 3

Prepare an income statement for the quarter ended September30.

	Beech Corporation Income Statement For the Quarter Ended September 30 0 0 $0

Req 4

Prepare a balance sheet as of September 30.

	Beech Corporation Balance Sheet September 30 Assets Total assets $0 Liabilities and Stockholders'Equity Total liabilities andstockholders' equity $0