Beech Corporation is a merchandising company that is preparing a master budget for the third quarter....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 93,000 127,000 45,000 219,000 $ 484,000 $ 80,000 330,000 74,000 $ 484,000 Beech's managers made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $300,000, $320,000, $310,000, and $330,000, 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 25% of the cost of next month's sales. The cost of goods sold is 60% 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 $56,000. Each month $6,000 of this total amount is depreciation expense and the remaining $50,000 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. 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 for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Beech Corporation is a merchandising company that is preparing a master budget for the third quarter. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 93,000 127,000 45,000 219,000 $ 484,000 $ 80,000 330,000 74,000 $ 484,000 Beech's managers made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $300,000, $320,000, $310,000, and $330,000, 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 25% of the cost of next month's sales. The cost of goods sold is 60% 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 $56,000. Each month $6,000 of this total amount is depreciation expense and the remaining $50,000 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. 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 for the quarter ended September 30. 4. Prepare a balance sheet as of September 30.
Expert Answer:
Answer rating: 100% (QA)
Certainly Lets tackle this problem step by step Well calculate the issue price of the bonds issued b... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The companys balance sheet as of June 30th is shown below: Beechs managers...
-
In thinking about the appropriate balance between the market and the government in achieving sustainability, do you think the government needs to take a stronger role or would you favor reducing...
-
A factory produces cardboard boxes. The production sequence consists of three operations: (1) cutting, (2) indenting, and (3) printing. There are three machines in the factory, one for each...
-
Refer to the data in Exercise 17-38. Data in Exercise 17-38. Kentford Associates is a small professional services firm. Last month, Kentford billed more hours than expected, and profits reflected...
-
Using the method of subregions, derive an equation for the transverse modulus, \(E_{2}\), for the RVE, which includes a fiber/matrix interphase region, as shown in Figure 3.27. Matrix Fiber Sed d...
-
Select the best answer. 1. A government opts to set aside $ 10 million of general-fund resources to nance a new city hall. Construction is expected to begin in several years, when the city has been...
-
Robert is a British citizen, who was born and resides in London, England with his spouse, Maria. Robert has a four-year Bachelor's degree in Engineering Technology from the University of Cambridge in...
-
There is 50 million receivable due in 3 months from a customer who has purchased machinery from IC Inc. The current spot exchange rate $1.8870/. The company is considering hedging this using a...
-
Explain tonicity and how plant and animal cells deal with varying tonicity in their environments .
-
Describe how the following three subjects are interrelated:(give an example) a. Capital structure b. Leverage c. Risk
-
How do structural variations, such as inversions, deletions, and duplications, impact chromosome function and gene expression, and what are their implications for human health and evolution ?
-
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. a. $76,400 in raw materials were...
-
If the factors that comprise economies of scale were to be placed on a scale from most to least important, what would be their order of importance?
-
A leader must understand how leadership theories can be used to influence and reward individuals and teams, and develop interpersonal skills that build trust. Analyze each theory in relation to...
-
(a) Explain why the concentration of dissolved oxygen in freshwater is an important indicator of the quality of the water. (b) How is the solubility of oxygen in water affected by increasing...
-
The following is the trial balance of Sanjay Industries Ltd. as on 31st March 2006. Further information 1.Outstanding rent amounted to 7,200 while outstanding salaries 8,100 at the end of the year....
-
Refer to the case of Monik Traders given in the exercises of the last chapter. Monik Varma now wants to know as to where his firm stands after one month of running of the business. Help him. Towards...
-
The accountant of Pushpa Engineering Company Ltd. has prepared the following trial balance of the company as on 31st March, 2006. Further information 1. Authorised equity share capital of the company...
Study smarter with the SolutionInn App