[The following information applies to the questions displayed below Beech Corpor

Question

[The following information applies to the questions displayed below Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets $ 75,000 140,000 66,500 227,000 $ 508,500 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 88,000 311,000 109,500 S 508,500

Explanation / Answer

Schedule of Expected cash Collections July AUG SEP Quarter Sales 380000 400000 390000 1170000 From Accounts receivable 75000 75000 july sales 133000 247000 380000 August 140000 260000 400000 September 136500 136500 Total collections 208000 387000 396500 991500 2 Merchandise purchase BUDGET July AUG SEP Quarter oct Budgeted cost of goods sold 266000 280000 273000 819000 287000 Add: desired ending inventory 70000 68250 71750 71750 Total Needs 336000 348250 344750 890750 Less: beginning inventory -66500 -70000 -68250 -66500 required purchases 269500 278250 276500 824250 Schedule of cash disbursements- Merchandise purchases July AUG SEP Quarter March purchases 88000 88000 April Purchases 107800 161700 269500 May purchases 111300 166950 278250 June purchases 110600 110600 Total Disbursements 195800 273000 277550 746350 3 CASH BUDGET July AUG SEP Quarter Beginning cash Blance 75000 42200 111200 75000 Add: Collections 208000 387000 396500 991500 Total Cash Available 283000 429200 507700 1066500 Less: Cash Disbursements For Inventory 195800 273000 277550 746350 For Expenses 45000 45000 45000 135000 Total Cash Disbursements 240800 318000 322550 881350 Excess / Deficiency of cash 42200 111200 185150 185150 Financing: Borrowings 0 0 repayments 0 Interest 0 0 Total Financing 0 0 0 0 Ending cash Balance 42200 111200 185150 185150 Budgeted Income statement For the quarter ended Mar 31 Particulars Amount Amount Sales 1170000 Cost of goods sold Beginning inventory 66500 Purchases 824250 Cost of good available for sale 890750 Desired ending inventory -71750 less: Cost of goods sold 819000 Gross Margin 351000 Less: selling and administration Depreciation 21000 Other Expenses 135000 Total selling and administration 156000 Net operating income 195000 Interest Expenses 0 Net Income 195000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.