7/31/2018 Assignment Print Vieww The fowowing inormation applies to the quesrons
ID: 2436799 • Letter: 7
Question
7/31/2018 Assignment Print Vieww The fowowing inormation applies to the quesrons disoisyed beio Beech Corporation is a merchandising comany that is proparirg a maser b dget for the third quarter of the zelendar year. The companys balance sheet as af June 30th s shown beloe Balarco Se Jure 30 Assets Cash Accounts recevaiale Irventory Pent end equicmert. ner at depreciation otal assets s 6co0 133.C00 70.200 33,2GO Liabilrties and Stocholders' Equity Accounts psyabe Common stack Rotained carniegs Total liabities and storkhodes' equity 11200 533,200 11 Award: 10.00 points Beech's manegers nave made the following additonal assumptions and estimnes 1. Estimated sales for July, August, Sepiember, ans October wil be $380.000, $410.000, $400,000 and $420,000 2 All sales are on credit and all credit sales ro ooiected. Each renth's credit sales Collected 35% intho month a db and 65% in the month tollowing the sale. All of the actounts receivable at Jurne 30 wll se collected in y Each months ending inventory must equa 30% of he cost of next mont's sales. The oost of gcoda sold,s 60% of company pays for 40% of its merchandise purchases in me month of the purchase ang the remaining 60% in the the purchase. Al o the accounts payable at June 30 will be pad in Juy 4. Monthly selling and aoministrstve experses are always $54.000. Each menth S7,00this total amount is d expense and the rgmaining S47,000 rclates to expenses that are paid in the month they are ircurrec. 5. The compety does net plan to berro money or pByor declre dividerds curing the quarter enced Sepiomber 30. The company dces not plan to issue any conmman slock or repurchase its cun stock duirg the cuarter ended Septembor 30 1. Prepare a schedula of expected cash collecticns for July, August, and September. Aso compute total cash colections fo ended September 30 2-a. Prepare a merchandise purchases budget fer July, August, and September. Also compute tocal merchandse purchases for the quarter ended September 30. 2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September total cash disbursements for merchandise purchases for the quarter ended September a0. 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30 e quarter Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2 Ret 3 Req 4 Prepare an income statement for the 30. Beech Corporation Income Staternent For the Quarter Ended September 30 Red 28 Rsg References hitp lezto.mheducation.com/hm.tpxlodone15SirgloPrinViewåsingieQuesno 11.&postSubmissianew; 13252709243974473,1 23743... 1/2Explanation / Answer
Solution:
Beech Corporation
Income Statement
For the Quarter Ended Sepember 0
$$
Sales Revenue (refer Note 2)
$1,200,000
Less: Cost of Goods Sold (refer Note 2)
$720,000
Gross Profit
$480,000
Selling and administrative expenses (54,000*3)
$162,000
Operating Income
$318,000
Less: Interest Expenses (if any. No information is given)
$0
$318,000
Less: Income Taxes (no rate is given)
$0
Net Income
$318,000
Note 2 –
July
August
September
Total
Budgeted Sales
$390,000
$410,000
$400,000
$1,200,000
Cost of Goods Sold (60% of Sales)
$234,000
$246,000
$240,000
$720,000
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Beech Corporation
Income Statement
For the Quarter Ended Sepember 0
$$
Sales Revenue (refer Note 2)
$1,200,000
Less: Cost of Goods Sold (refer Note 2)
$720,000
Gross Profit
$480,000
Selling and administrative expenses (54,000*3)
$162,000
Operating Income
$318,000
Less: Interest Expenses (if any. No information is given)
$0
$318,000
Less: Income Taxes (no rate is given)
$0
Net Income
$318,000
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