Question :

1. How much is BEECH Corporation expected cash collections in the month of August?

Multiple Choice A. $317,000 B. $115,500 C. $214,500 D. $201,500

2. How much is BEECH Corporation expected cash disbursement for merchandise in the month of July?

Multiple Choice A. $142,200 B. $175,800 C. $94,800 D. $$81,000

3. How much is BEECH Corporation expected Net Operating Income for the quarter ending on September 30?

Multiple Choice A. $240,000 B. $960,000 C. $786,000 D. $66,000

4. How much is BEECH Corporation expected Accounts Receivable balance on September 30?

Multiple Choice A. $326,500 B. $112,000 C. $214,500 D. $208,000

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: Beech Corporation Balance Sheet June 30 Assets Cash $ 83,000 Accounts receivable 126,000 Inventory 69,750 Plant and equipment, net of depreciation 220,000 Total assets $ 498,750 Liabilities and Stockholders Equity Accounts payable $ 81,000 Common stock 348,000 Retained earnings 69,750 Total liabilities and stockholders equity $ 498,750 Beechs managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $310,000, $330,000, $320,000, and $340,000, respectively. 2. All sales are on credit and all credit sales are collected. Each months 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 months ending inventory must equal 30% of the cost of next months sales. The cost of goods sold is 75% 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 $58,000. Each month $6,000 of this total amount is depreciation expense and the remaining $52,000 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