hapter 8 Help Save & Exits Check my wo 2 Required information Schedules of Expec
ID: 2401347 • Letter: H
Question
hapter 8 Help Save & Exits Check my wo 2 Required information Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-9, LO8-10] 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 10 year. The company's balance sheet as of June 30th is shown below: Print Beech Corporation June 30 Cash $ 95,000 142,000 54,000 225,000 $516,000 Total assets s 86,000 332,000 able $ 516,000 Total 1iabilities and stockholders' equity Exercise 8-12 Beech's managers have made the following additional assumptions and estimatesExplanation / Answer
Beech Corporation Sales Budget Months July August September Quarter Budgeted unit sales $ 3,60,000.00 $ 3,80,000.00 $ 3,70,000.00 $ 11,10,000.00 Total sales $ 3,60,000.00 $ 3,80,000.00 $ 3,70,000.00 $ 11,10,000.00 Schedule of expected cash collections July August September Quarter June Sales $ 1,42,000.00 $ 1,42,000.00 July sales(35% of $360000) in July,(65% of $360000) in August $ 1,26,000.00 $ 2,34,000.00 $ 3,60,000.00 August Sales(35% of $380000) in August,(65% of $380000) in septemebr $ 1,33,000.00 $ 2,47,000.00 $ 3,80,000.00 Septemebr Sales(35% of $370000) in September,(65% of $370000) in October $ 1,29,500.00 $ 1,29,500.00 Total Cash collections $ 2,68,000.00 $ 3,67,000.00 $ 3,76,500.00 $ 10,11,500.00 Cost of goods sold Month Sales Cost of goods sold(60% of Sales) Ending Inventory Beginning Inventory July $ 3,60,000.00 $ 2,16,000.00 $228000*25% $216000*25% August $ 3,80,000.00 $ 2,28,000.00 $222000*25% $228000*25% September $ 3,70,000.00 $ 2,22,000.00 $234000*25% $222000*25% October $ 3,90,000.00 $ 2,34,000.00 Merchandise Purchase Budget July August September Quarter Budgeted cost of goods sold $ 2,16,000.00 $ 2,28,000.00 $ 2,34,000.00 $ 6,78,000.00 Add: Desired Ending Inventory $ 57,000.00 $ 55,500.00 $ 58,500.00 $ 58,500.00 Total Needs $ 2,73,000.00 $ 2,83,500.00 $ 2,92,500.00 $ 7,36,500.00 Less: Beginning Inventory $ 54,000.00 $ 57,000.00 $ 55,500.00 $ 54,000.00 Required Purchases $ 2,19,000.00 $ 2,26,500.00 $ 2,37,000.00 $ 6,82,500.00 Schedule of Cash disbursement for purchases July August September Quarter Accounts Payable $ 86,000.00 $ 86,000.00 For July Purchases $ 87,600.00 $ 1,31,400.00 $ 2,19,000.00 For August Purchases $ 90,600.00 $ 1,35,900.00 $ 2,26,500.00 For September Purchases $ 94,800.00 $ 94,800.00 Total Cash Disbursement $ 1,73,600.00 $ 2,22,000.00 $ 2,30,700.00 $ 6,26,300.00 Beech Corporation Income Statement For the Quarter Ended Septemeber 30th Sales $ 11,10,000.00 Cost of goods sold $ 6,78,000.00 Gross Profit $ 4,32,000.00 Selling & administerative expenses($48000*3) $ 1,44,000.00 Net Operating Income $ 2,88,000.00 Net Income $ 2,88,000.00 Beech Corporation Balance Sheet September 30th Current Assets Cash $ 3,57,200.00 Accounts Receivable($370000*65%) $ 2,40,500.00 Inventory $ 58,500.00 - Total Current Assets $ 6,56,200.00 Fixed Assets Plant & Equipment (Net)($225000-$7000*3) $ 2,04,000.00 Total Assets $ 8,60,200.00 Liabilities & stockholder's Equity Accounts Payable $ 1,42,200.00 Common Stock $ 3,32,000.00 Retained Earnings($98000+$288000) $ 3,86,000.00 Total Liabilities & Stockholder's Equity $ 8,60,200.00 Cash Balance 30th September Beginning Balance $ 95,000.00 Add: Amount received from accounts receivable $ 10,11,500.00 Less: amount paid to Accounts Payable $ 6,26,300.00 Less: amount paid for selling & administrative expenses($41000*3) $ 1,23,000.00 Cash Balance 30th September $ 3,57,200.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.