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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. The company's balance sheet as of June $30$th is shown below:

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Beech Corporation Balance Sheet June $30\}\backslash \backslash$

$\backslash$hline Assets & $\backslash \backslash$

$\backslash$hline Cash & $\backslash$$ $81,000\backslash \backslash$

$\backslash$hline Accounts receivable & $132,000\backslash \backslash$

$\backslash$hline Inventory & $56,250\backslash \backslash$

$\backslash$hline Plant and equipment, net of depreciation & $214,000\backslash \backslash$

$\backslash$hline Total assets & $\backslash$$ $483,250\backslash \backslash$

$\backslash$hline Liabilities and Stockholders' Equity & $\backslash \backslash$

$\backslash$hline Accounts payable & $\backslash$$ $75,000\backslash \backslash$

$\backslash$hline Common stock & $346,000\backslash \backslash$

$\backslash$hline Retained earnings & $62,250\backslash \backslash$

$\backslash$hline Total liabilities and stockholders' equity & $\backslash$$ $483,250\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Beech's managers made the following additional assumptions and estimates:

$1.$ Estimated sales for July, August, September, and October will be $\backslash (\backslash$$ $250,000,\backslash$$ $270,000,\backslash$$ $260,000\backslash ),$ and $\backslash (\backslash$$ $280,000\backslash ),$ respectively.

$2.$ All sales are on credit and all credit sales are collected. Each month's credit sales are collected $\backslash (35\backslash \%\backslash )$ in the month of sale and $\backslash (65\backslash \%\backslash )$ 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 $\backslash (30\backslash \%\backslash )$ of the cost of next month's sales. The cost of goods sold is $\backslash (75\backslash \%\backslash )$ of sales. The company pays for $\backslash (40\backslash \%\backslash )$ of its merchandise purchases in the month of the purchase and the remaining $\backslash (60\backslash \%\backslash )$ 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 $\backslash (\backslash$$ $46,000\backslash ).$ Each month $\backslash (\backslash$$ $5,000\backslash )$ of this total amount is depreciation expense and the remaining $\backslash (\backslash$$ $41,000\backslash )$ 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 $30.$

Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$A

Required $2$B

Required $3$

Required $4$

Prepare a merchandise purchases budget for July, August, and September. Also, compute total merchandise purchases for the quarter ended September $30.$