Question
In: Accounting
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year.
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 | $ | 84,000 |
| Accounts receivable | 144,000 | |
| Inventory | 63,750 | |
| Plant and equipment, net of depreciation | 223,000 | |
| Total assets | $ | 514,750 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 84,000 |
| Common stock | 349,000 | |
| Retained earnings | 81,750 | |
| Total liabilities and stockholders’ equity | $ | 514,750 |
Beech’s managers have made the following additional assumptions and estimates:
-
Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, respectively.
-
All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.
-
Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.
-
Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 relates to expenses that are paid in the month they are incurred.
-
The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.
Required:
1. Prepare a schedule of expected cash collections for July, August, and September.
2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.
2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.
3. Prepare an income statement that computes net operating income for the quarter ended September 30.
4. Prepare a balance sheet as of September 30.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year
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 CorporationBalance SheetJune 30
Assets
Cash
$ 90,000
Accounts receivable
136,000
Inventory
62,000
Plant and equipment, net of depreciation
210,000
Total assets
$ 498,000
Liabilities and Stockholders’ Equity
Accounts payable
$ 71,100
Common stock
327,000
Retained earnings
99,900
Total liabilities and...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year.
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
$
74,000
Accounts receivable
143,000
Inventory
73,500
Plant and equipment, net of depreciation
224,000
Total assets
$
514,500
Liabilities and Stockholders’ Equity
Accounts payable
$
85,000
Common stock
310,000
Retained earnings
119,500
Total...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year.
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 $ 94,000 Accounts receivable 145,000 Inventory 59,400 Plant and equipment, net of depreciation 222,000 Total assets $ 520,400 Liabilities and Stockholders’ Equity Accounts payable $ 83,000 Common stock 331,000 Retained earnings 106,400 Total liabilities and stockholders’ equity $ 520,400 Beech’s managers...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
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
$
74,000
Accounts receivable
143,000
Inventory
73,500
Plant and equipment, net of depreciation
224,000
Total assets
$
514,500
Liabilities and Stockholders’
Equity
Accounts payable
$
85,000
Common stock
310,000
Retained earnings
119,500
Total liabilities and stockholders’ equity
$
514,500
Beech’s managers...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
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
$
74,000
Accounts receivable
143,000
Inventory
73,500
Plant and equipment, net of depreciation
224,000
Total assets
$
514,500
Liabilities and Stockholders’
Equity
Accounts payable
$
85,000
Common stock
310,000
Retained earnings
119,500
Total liabilities and stockholders’ equity
$
514,500
Beech’s managers...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
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
$ 92,000
Accounts
receivable
130,000
Inventory
48,600
Plant and
equipment, net of depreciation
216,000
Total
assets
$ 486,600
Liabilities and Stockholders’ Equity
Accounts
payable
$ 77,000
Common
stock
329,000
Retained
earnings
80,600
Total
liabilities and stockholders’ equity
$ 486,600
Beech’s managers have
made...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
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
$ 71,000
Accounts receivable
131,000
Inventory
45,500
Plant and equipment, net of depreciation
215,000
Total assets
$ 462,500
Liabilities and Stockholders’ Equity
Accounts payable
$ 76,000
Common stock
307,000
Retained earnings
79,500
Total liabilities and stockholders’ equity
$ 462,500
rev: 05_02_2017_QC_CS-88254...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
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
$
70,000
Accounts
receivable
134,000
Inventory
48,300
Plant and
equipment, net of depreciation
212,000
Total
assets
$
464,300
Liabilities and Stockholders’ Equity
Accounts
payable
$
73,000
Common
stock
306,000
Retained
earnings
85,300
Total
liabilities and stockholders’ equity
$
464,300
Beech’s managers...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
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
$ 90,000
Accounts receivable
136,000
Inventory
62,000
Plant and equipment, net of depreciation
210,000
Total assets
$ 498,000
Liabilities and Stockholders’ Equity
Accounts payable
$ 71,100
Common stock
327,000
Retained earnings
99,900
Total liabilities and stockholders’ equity
$ 498,000
Beech’s managers have made...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
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
$ 90,000
Accounts receivable
136,000
Inventory
62,000
Plant and equipment, net of depreciation
210,000
Total assets
$ 498,000
Liabilities and Stockholders’ Equity
Accounts payable
$ 71,100
Common stock
327,000
Retained earnings
99,900
Total liabilities and stockholders’ equity
$ 498,000
Beech’s managers have made...
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