131/2016 Assignment Print Vev The foowing infomnstion agpwes ho tne quessions or

ID: 2436802 • Letter: 1

Question

131/2016 Assignment Print Vev The foowing infomnstion agpwes ho tne quessions orptyeo boi Beech Corporation tsa merc ?????sing compan·tat is prepa..ng a maste?cudget .or the tnird quarter of the calendar ye balancs sheet as of June 3C h is stom elow company's Baech Corperat or Balanc: Steet ne 3 Assets 5 95000 13900D 0.200 Accounts receivable Pant and oaupmant, net of cepreciet or Tatal assess Labilities and Stockholders'Equity Accounts peyeble Commion steck S33.200 11.200 523200 2rd: 10.00 points Beech's managers hace made the fellowing eddiliona! sssumptions and esimates: 1. Eat mated 3?4s for July, August September and October wil be S390,000. $4 10,000, S4CO,000, and S420.000, respetively 2. Ai sales are on crest and all creci: sales are olleetod. Eacn rentr''s credi?sales a10 colloctoe 45% in the month e and 55% n the month followng the sae. Al of the aocounts receivatle at June30be collected in Juy. 3. Each month's ending inventory must equal 20% of he eost :1 next months eales. The cost of goods 90ld is 60% of Id The fallowing company pays for 30% et its merchandise purchases in the nrcnt? cf the pungrase gnd tng remaining 70% r:1h the purchase. All of the acoounts payable at Ju1e 30will be pai: ir July 4. Monthly se ing andscministrative expenses are alays S54.000 Each month $7,000 of his total amound s expense and the remaining S47,00 relstes o expses thai are paid in the orh they are incurred 5. The company does not p'an to berro roney or pay or declare aiv dends during the querter ended September 30. The does not plan te ssue ary comon stock cr epurohasa ia cwn stock curing the quarter ended September 30 Required: 1 Preparg a schedule af expected cash collectins for Jul,August and Sepcemcer. Also ocmpute total cash ocllections ended September 30 2-a. Prepare a merchandse purchases budgs:fr July August and Seplerber. Nse compute lolal merchandise qusrter ended Sectemcer 30. 2-b. Prepare a schedule of expected eash disbursements tor merchandise purchases for July August, anc Scptermber total cash disbursements tornerchandise pun rasas for quane?ndet! September 30. 3. Prepare an income statament for the quarter ended Seplember 3C 4. Prepare s bslance sheet as of Septembar 30. e quarter for the Complete this question by entering your answers in the tabs below. Req 1 Res 2A Req 28 Reg 3 Reg 4 for the Prepare a schedule of expected cash colleczions for July, Agust, and September. Also compute total cesh quarter ended Septomber 30 Schedule of Expected Cash Collections Month July AugustSeptembrQuarter From July salss From Augusi seles From Saptamber sale:s Totd cash cofections 2A Refarences hetp 1 122

Explanation / Answer

Solution:

Schedule of Expected Cash Collections

Months

July

August

September

Quarter

Accounts Receivable, beginning balance

$139,000

July Sales (45% collected in July and 55% Collected in August)

$175,500

$214,500

August Sales (45% collected in Aug and 55% Collected in Sept.)

$184,500

$225,500

September Sales (45% collected in Sept and 55% Collected in Oct)

$180,000

Total cash collections

$314,500

$399,000

$405,500

$1,119,000

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