7/31/2018 Assignment Print Vie The folowing intomeion sepies so the questons dis

ID: 2436793 • Letter: 7

Question

7/31/2018 Assignment Print Vie The folowing intomeion sepies so the questons dispnayeo e Beech Carporat on is amerchans sing company hat is pracarng e raste oudget for the ird quanter of the celencdlar yea balance sheet as of une 30th is shoon b c he copany's Beech Carporain Assets Cash Accourts recevaible 39.C00 T0.7CC 228.c00 533,200 Pant and eauigment, nz: af depretiation otal essets Liabilities and Stociholders Equty Accounts payabie Comman stock Retained ee rings S ,0CO 33,000 S 533,2CC Tatal liebiites and eckhalcers' equit 11rd 10.00 points Beechs managers have made the fcllowing sdditional assumations and est mates: 1. Estimated saies for July, August Soptember, and Cctober will be $380.000, $415,000, $400,000, and $420,000 2 All sales ro on credt and all credit sales are collected. Each month's credit sn as ase callected 35% in the month of sa and 65% n the month fallowing the sale. All of tha accounts recevable at Jure 30 ll be collectad in Each month's ending entory must equal 30% ofte osto next month's sel s Te c st of ec ds lds 60% o company pays for 40% of its merchandise ouchsses in the rncnth of the puchase are the remaning 60% in the the purchase. All ofthe accounts payable at June 30 will bo paid in Ju'y 4 Monthly sellirg and adminisrsve expenses are alays S54.000. Each menth S7,000 of tnis total amount i expense and the remaining 347,000 relates to experses that are peid in the month they are incurred. 5. The company does not plan to borrow money or pay or declare div dends during the quarter ended seplember 30 ompany oces not pian to issue any commen stock or ipurchae rs cwn stock curing the quarter ended September 30 Required: 1. Prepare a schedule of expected cas aolectione tor July. August, and Septomber. Also compute tctal cesh coliectiors for the quarter ended Septemiser 30 2-a. Prepare a merchsndise purchasas b.dget fer July August, ana Sapterer Also compute tolial merchandise p quartar anded Septembe30 2-b. Prepare a scnedte o expecled cash disbursements fer merchandisa urcheses forJuy August, and September total cash disbursaments for merchandise surshases for the quarter erdes September 30 3. Prepare an income statement for tre quaner endes September 30 4, Prepare a balance sheel as of Septamber 30 r the this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare a of expected cash collections for July, August, and September. Also compute total cash ons for the ended September 30 Schedule of Expected Cash Collections July August September Quarter Fro? July eales From August sales From Seaterbar sales Rea Rea 2A > References 323743 112

Explanation / Answer

Schedule of Expected Cash Collections

Months

July

August

September

Quarter

Opening Accounts Receivables

$139000

From july sales

$136500

$253500

$390000

From august sales

$143500

$266500

$410000

From September sales

$140000

Total cash collections

$275500

$397000

$406500

$1079000