7/31/2018 Assignment Print Vie ecoch Corporation is a me chandising copen trat s

ID: 2436803 • Letter: 7

Question

7/31/2018 Assignment Print Vie ecoch Corporation is a me chandising copen trat s repering a master budge tor he thind quete of the calerdar yer he company's belance sheetes of June 30 h is shar elow Baec Corperaton Assets Cash Accoums recevable 9805 0200 Plart and equipment, ret of ceprece:or Total ossets 533,2D Liablities and Stackholders Equity Acoaunts payazle Cammon stock $ 8900 333.005 Totel Salsiloies and stockncldars euy 533 2DD Award. 10.00 points Beech's managers have made the filowing aoditional assmatiens snd estmates: 1. Estimated saies for July, August September, and Octoper will be 3390 000, $410,000, $400,000 and $420,00o 2 All sales sre on credit and all cree: sales are cellected. Each mrth's credit ases ?'e aallected 45% in the month of sa' and 55% in the monh followirg the sale. Al of the accsunts receivable at Jure 30 l be collectad in July. Each mortis ending mentory must equal 20% ofthe cost of next month's s@es. The ocst of goods sold is 60% or The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in re the purchase. All ofthe acoounls payable a June 30 ill be psd nJuly 4 Monthly seling and administrative experses are ahsays $54 000. Each month S7.000 ? this otal amount is expense and the remaining S47,000 relles to exponsas that are pad n the month they are ircurrec. 5 The company does rat plan to berowmoney or paor declare dividends during the quarter ended September 30. The company dces not pan to issue any ocmron stock or repurchate its oon stock during the cuarter erded Segtember 30 Required: 1. Prepare a schedule cf expecles cash ollect ons for JuyAuqu and September Also compute otal cash coilections for he quarer ended September 3 2-a. Prepare a merchandise purcnases sudpet for July, Augst and September,Also oonrpute torsl merchandee quarter ended Seprember 30 2-b. Prepare a schedule of expected cash distursaments for merchadise puraes forJuly, Aupust, and September. Aso total cash disbursements for merchandise purchases for the quarter anded September a 3. Prepare an income statarrent for the quarter ended September 3c. 4. Prepare a balance shoct as of Seplember 30 the Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Res 3 Req 4 Prepare a merchandise purchases budget for July, August, and Sepbember. Also compute total merchandise p quarter ended September 30. s for the Merchandise Purchases Budget luby AugustSeptember Quarter Tolal needs Requirad purchases Reg Reg 29 Leaming Objeclive: Da-02 Leaming ObjtiveD-09 P apare a pudpeted inoomo Prapare s sales budget including a schedus ci expected cash colecticns. Worksheet s.lement 341... 12

Explanation / Answer

Merchandise Purchase Budget :-

July

August

Sep

Quarter

Cost of goods sold

(390000 * 60%)

=234000

(410000 * 60%)

=246000

(400000 * 60%)

=240000

(+) Desired Ending Inventory

(246000 * 20%)

=49200

(240000 * 20%)

=48000

(420000 * 60% * 20%)

=50400

Total Needs

283200

294000

290400

(-) Beginning Inventory

70200

49200

48000

Required Purchases

213000

244800

242400

700200