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Beech's managers made the following additional assumptions and estimates:

$1.$ Estimated sales for July, August, September, and October will be $\backslash (\backslash$$ $210,000,\backslash$$ $230,000,\backslash$$ $220,000\backslash ),$ and $\backslash (\backslash$$ $240,000\backslash ),$ respectively.

$2.$ All sales are on credit and all credit sales are collected. Each month's credit sales are collected $\backslash (35\backslash \%\backslash )$ in the month of sale and $\backslash (65\backslash \%\backslash )$ 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 $\backslash (30\backslash \%\backslash )$ of the cost of next month's sales. The cost of goods sold is $\backslash (60\backslash \%\backslash )$ of sales. The company pays for $\backslash (40\backslash \%\backslash )$ of its merchandise purchases in the month of the purchase and the remaining $\backslash (60\backslash \%\backslash )$ 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 $\backslash (\backslash$$ $60,000\backslash ).$ Each month $\backslash (\backslash$$ $5,000\backslash )$ of this total amount is depreciation expense and the remaining $\backslash (\backslash$$ $55,000\backslash )$ 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 $30.$

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 $30.$

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