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

Estimated sales for July, August, September, and October will be $$260,000,$$$280,000,$$$270,000,$ and $$290,000,$ respectively.

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.

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. The

company pays for $30\%$ of its merchandise purchases in the month of the purchase and the remaining $70\%$ in the month following

the purchase. All of the accounts payable at June $30$ will be paid in July.

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 are incurred.

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:

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 $30.$

Prepare an income statement for the quarter ended September $30.$

Prepare a balance sheet as of September $30.$