Business, 15.04.2020 22:46 MAKYERAHWILLIAMS09

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 have made the following additional assumptions and estimates:

Estimated sales for July, August, September, and October will be $230,000, $250,000, $240,000, and $260,000, respectively.

All sales are on credit and all credit sales are collected. Each month's credit sales are collected by 35% in the month of sale and 65% in the month following the sale.

All of the accounts receivable on June 30 will be collected in July. Each month's ending inventory must equal 30% of the cost of next month?s sales. The cost of goods sold is 70% 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 on June 30 will be paid in July. Monthly selling and administrative expenses are always $42,000. Each month $7,000 of this total amount is depreciation expense and the remaining $35,000 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 on September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended on September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also, compute total cash collections for the quarter ended September 30.

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. Also, compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 21:00

Jameson manages a well-known cell phone company. this company has been voted as having the best cell-phone service. consumers appreciate the fact that they can call from almost anywhere in the world and the service still gets through. jameson knows that the company's product far surpasses that of the competition. one thing has been bothering him, though. in order to put so many resources into ensuring the best service, jameson has cut back on employees at the firm's customer call center. recently, consumers have begun complaining about long wait times when they call in with a problem or concern. although its cell phone service is still considered one of the best, customer satisfaction with the firm's customer service has plummeted. jameson does not understand why consumers are getting so upset. he believes the exceptional cell phone service more than makes up for long waiting periods and other issues with its customer service. "after all," he says, "they can't have it all. if i invest more in customer service, that means less investment on ensuring the quality of our product offering."refer to scenario. jameson has asked you, a marketing consultant, to give him advice. he cannot understand how a cell-phone company with the best product offering in the cell-phone service industry could get such low satisfaction ratings simply because the customer service is not up to par. you suggest that jameson has a narrowly defined view of the company's product offering. you tell jameson that successful marketers should define their products as what they

Answers: 2

Answer

Business, 22.06.2019 11:50

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i.e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i.e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.

Answers: 3

Answer

Business, 22.06.2019 21:40

Heather has been an active participant in a defined benefit plan for 19 years. during her last 6 years of employment, heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest-income years). calculate heather’s maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants). assume that heather’s average compensation for her three highest years is $199,700. calculate her maximum allowable benefits.

Answers: 3

Answer

Business, 23.06.2019 00:30

You have been solicited to conduct a performance evaluation for a public organization that has been corrupted over issues of personnel embezzling funds. before actually conducting the evaluation, you—the evaluator—need to know certain specifics to conduct a thorough evaluation. compose a proposal that describes what type of evaluation will be conducted. in the proposal, explain the type of public organization. describe some of the main services, products, and activities the organization provides to the public. describe the size of the problem, who is affected by the problem, how long the problem has been in existence, and how long the evaluation will take. also, describe what the evaluation will assess with respect to organizational leadership. finally, what outcomes do you propose the evaluation will to achieve for the organization?

Answers: 2

Answer

You know the right answer?

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...

Questions