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2 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 10 polnts Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets $ 74,099 143,890 73,580 224,698 $ 514,58e eBook Liabilities and Stockholders’ Equity Accounts payable Cormon stock Retained earnings $ 85,889 318,690 119,580 S 514,589 Print Total liabilities and stockholders equity Exerclse 8-12 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 recelvable 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 saleG. 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 wll be pald In July 4. Monthly selling and adminlstrative expenses are always $46,000. Each month $7000 of this total amount Is depreclation expense and the remalning $39,000 relates to expenses that are pald In the month they are Incurred. 5. The company does not plan to borrow money or pay or declare dividends durlng the quartereded 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. Required 1 Required 2A |Required 2B Required 3 Required 4



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