731/2018 Assignment Print View The folowing noeon scoies to the questans spye Be
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731/2018 Assignment Print View The folowing noeon scoies to the questans spye Beech Corporat on is a nerchanc sing compeny hat is praga ng a mastor Eudg balance sheet es of June 30th is shhowen belcw for ho thire cuaner of thè calendar yea he company's Bsartce Sheet une 30 Assets Cash Accounts rece vable 129.000 0.200 228 C00 533,2co Fient and equpiment, nat af depreciation Total assets Liabiniesand Stockholders' Equity Accounts psrabe Common stock Rotsinadeareings $ 89.c00 333GGO Award 1000 points Beech's nanagers have made the following additicnal assumptions and estimates . Estimated sales for July, August September, and Octoer will be $330,000, S410,000, $400,000, and $420,000 2. All sales are on crede and al credit sales anr collected. Each months credit sales aro oelleeted 35% in the month ind 65% n the month following the sale. All o the accounts rsceivable atJune 30 oill be coliscted in July. 3. Each month's ending inventory musi equal 30% ofte costar next month's sales. The cost of goods sold is dose of The company pays for 40% of its merchandise purehases in the month of te Prchase and the remaining 60% in the the purchase. All of the accouns payable at une 30 oill bo ped in July 4 Monthly selling and acministrative expenses are alsays $54,000. Each raonth S7,000 of this tosl amount is d Expense and the remaining S47,00 relstes to expenses tha are paid in the month they are nourres. 5. The company does not pan to berrow money or pay or declere dividends during the quarter ended Soptemter 30. The does not pian to issue any conmon stock or repurohase its on sock during the quarter anded September 30 1. Precare a schedue of expected cash oillectans for July, August, and September. Also compute total cash colectiore quarter ended September 30. 2-a. Prepare a merchandse purchases budpat for July, August, and September,Also oompute total merchands quarter ended September 30 2-b. Prepare a schedule of expecied eash disbursements for merchandise puchases for July, Aup st, and September total cash disbursements for merchandise puchases for the quarter ended September 30 3. Prepare an income statement for the quarter ended September 0. 4. Prepare e balancs shect as of Septeriber 30 the Complete this question by entering your answers in the tabs below. Req 1 Res Raq 2B Rec 3 eq 4 budget for July, August, and Sepzember. Also compube total merchandise p s for the Prepare ? quarter ended r 30. Merchandise Purchases Budgst August September Quarter Total neads Required purcieses es, 28 Laarr ng Objectieo: G8-09 Pmpare a budgeted income Leairing Ope?ee: a8-12 Prepsre a sales budge expected cash tclsctiors.Explanation / Answer
Solution:
Merchandise Purchases Budget
July
August
September
Quarter
Cost of Goods Sold (Refer Note 1)
$234,000
$246,000
$240,000
Plus: Desired Ending Inventory (30% of Next Month's Cost of Goods Sold)
$147,600
$144,000
$75,600
Total Needs
$381,600
$390,000
$315,600
Less: Estimated Beginning Inventory (Ending Inventory of Previous Month)
$70,200
$147,600
$144,000
Required Purchases
$311,400
$242,400
$171,600
$725,400
Note 1 – Calculation of Cost of Goods Sold
July
August
September
October
Budgeted Sales
$390,000
$410,000
$400,000
$420,000
Cost of Goods Sold (60% of Sales)
$234,000
$246,000
$240,000
$252,000
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Merchandise Purchases Budget
July
August
September
Quarter
Cost of Goods Sold (Refer Note 1)
$234,000
$246,000
$240,000
Plus: Desired Ending Inventory (30% of Next Month's Cost of Goods Sold)
$147,600
$144,000
$75,600
Total Needs
$381,600
$390,000
$315,600
Less: Estimated Beginning Inventory (Ending Inventory of Previous Month)
$70,200
$147,600
$144,000
Required Purchases
$311,400
$242,400
$171,600
$725,400
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