(Solved): Beech Corporation is a merchandising company that is preparing a master budget for the third quart ...

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's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be \( \$ 210,000, \$ 230,000, \$ 220,000 \), and \( \$ 240,000 \), respectively. 2. 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. 3. Each month's ending inventory must equal 30\% of the cost of next month's sales. The cost of goods sold is \( 60 \% \) 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. 4. Monthly selling and administrative expenses are always \( \$ 60,000 \). Each month \( \$ 5,000 \) of this total amount is depreciation expense and the remaining \( \$ 55,000 \) relates to expenses that are paid in the month they are incurred. 5. 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 th 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. Complete this question by entering your answers in the tabs below. Prepare a schedule of expected cash collections for July, August, and September. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. < Req2A Req \( 3> \) Prepare an income statement that computes net operating income for the quarter ended September 30. Prenare a halance sheet as of Sentemher 30 .