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 thequarter 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 1Req 2AReq 2BReq 3Req 4Prepare an income statement that computes net operating income for the quarter ended September 30.Beech CorporationIncome StatementFor the Quarter Ended September 300$ 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 calendaryear. The company's balance sheet as of June 30th is shown below:Beech CorporationBalance SheetJune 30AssetsCash$ 84,000Accounts receivable144,000Inventory63,750223,000Plant and equipment, net of depreciationTotal assets$ 514,750Liabilities and Stockholders' EquityAccounts payableCommon stock$84,000349,00081,750Retained earningsTotal liabilities and stockholders' equity$ 514,750Beech's managers have made the following additional assumptions and estimates:1. Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, 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 25% of the cost of next month's sales. The cost of goods sold is 75% of sales. Thecompany pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month followingthe purchase. All of the accounts payable at June 30 will be paid in July.4. Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expenseand the remaining $38,000 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 companydoes not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Honor Code- Since you have posted a question with multiple sub-parts, we will solve the first three…

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 $ 84,000 Accounts receivable 144,000 Inventory 63,750 Plant and equipment, net of depreciation 223,000 Total assets $ 514,750 Liabilities and Stockholders' Equity Accounts payable $84,000 Common stock Retained earnings 349,000 81,750 Total liabilities and stockholders' equity $ 514,750 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, 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 25% of the cost of next month's 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 $44,000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 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.

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 6PB: Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of...