REQ 2A is mostly wrong..

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. Beech Corporation Balance sheet June 30 Assets Cash 990,000 Accounts receivable 136,000 Inventory 62,000 plant and equipment, net of depreciation 210.000 Total assets 5498,000 Liabilities and stockholders' Equity Accounts payable 571,100 Cofinon stock 327,000 Retained earnings 99.900 Total abilities and stockholders' equity $.498,000 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August September, and October will be $210,000, $230,000, $220,000, and $240,000, respectively, 2. All sales are on credit and all credit soles 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. Eoch month's ending inventory must equal 30% 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 $60,000. Each month $5,000 of this total amount is depreciation expense and the remaining $55,000 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. Reg 1 Reg 2A Req 2B Reg 3 Reg 4 Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30, Merchandise Purchases Budget July August September Quarter Budgeted cost of goods sold $ 126,000 $ 138,000 $ 132,000 $ 396.000 Add: Desired ending merchandise inventory 27,600 26,400 28.800 28.800 Total needs 153,600 164.400 160,800 424,800 Less: Beginning merchandise inventory 62,000 27,600 26,400 62,000 Required purchases $ 91,600 $ 136,800 $ 134,400 $ 362,800