HW 8 Saved 10 points ellook Print References 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 Beech Corporation Balance Sheet June 30 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 $ 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. Help 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 totl 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. Required: 1. Prepare a schedule of expected cash collections for July, August, and September. 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. 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 28 Req 3 Req 4 ts Req 1 Req 2A Req 2B Req 3 Req 4 eBook Print ferences Prepare a schedule of expected cash collections for July, August, and September. Schedule of Expected Cash Collections Month Quarter July August September From accounts receivable $ 143,000 $ 143,000 From July sales 0 From August sales 0 From September sales 0 Total cash collections $ 143,000 $ 0 $ 0 $ 143,000 Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases fo quarter ended September 30. Merchandise Purchases Budget Total needs July August September Quarter Required purchases < Req 1 Req 2B > Required information Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Schedule of Cash Disbursements for Purchases From July purchases From August purchases From September purchases Total cash disbursements July August September Quarter $ 0 0 0 0 $ 0 $ 0 $ 0 $ 0 < Req 2A Req 3 > Required information Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare an income statement that computes net operating income for the quarter ended September 30.. Beech Corporation Income Statement For the Quarter Ended September 30 0 0 < Req 2B Req 4 > Required information Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a balance sheet as of September 30. Assets Beech Corporation Balance Sheet September 30 Total assets Liabilities and Stockholders' Equity $ 0