60.1K

Verified Solution

Link Copied!

1 Commerchanding comparing met for the art of our .. 41.11 16. lo 19 tal LDLI. kolde min Cee 7. 345,00 Tutal and equity Beech managers have made the following additional assumptions and estimates Estimated sales for July August September and October will be $220,000 $240,000, 5230,000, and $250,000, respectively 2. All sales are on credit and a credit ses are collected Each month's credit sales are collected 35% in the month of sand 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 2. Each months 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 dos of its merchandise purchases in the month of the purchase and the remaining 60% in the month following 4. Monthly seling and administrative expenses are always $40.000 Each month $6,000 of the total amount is depreciation expense 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 Prepare a schedule of expected cash collections for July August, and September. Also compute total cash collections for the quarter ended September 30 2. Prepare a merchandise purchases budget for July August, and September. Also compute total merchandise purchases for the Quarter ended September 30 26 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 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. Prev 1 of 5 Next >

Answer & Explanation Solved by verified expert

See Answer