Question

Required information Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [L08-2, LO8-4, LO8-9, Lo8-10] 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 96,000 139,000 70,200 228,000 $533,200 Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable $ 89,000 333,000 111,200 Common stock Retained earnings Total liabilities and stockholders' equity $533,200

Answer 1

A C E Cash Collection 1 August September Quarter July 2 3 Accounts Receivable $139,000 $139,000 4 July month Sales 5 August month sales 6 September month sales $175,500 $214,500 $390,000 $184,500 $225,500 $410,000 $180,000 $180,000 $314,500 $399,000 $405,500 $1,119,000 Total Cash Collections 7 8 Merchandise Purchase Budget 9 August September Quarter $720,000 July $234,000 $246,000 $240,000 10 11 Cost of Goods Sold 12 Add: Ending Inventory 13 Total Needs 14 Less: Beginning Inventory $49,200 $283,200 $294,000 $290,400 $70,200 $213,000 $244,800 $242,400 $48,000 $50,400 $50,400 $770,400 $70,200 $700,200 $49,200 $48,000 15 Merchandise Purchases 16 Cash Disbursements 17 August September Quarter July $89,000 18 19 Accounts Payable 20 July month purchases $89,000 $63,900 $149,100 $213,000 $73,440 $171,360 21 August moth Purchases $244,800 22 September month purchases $72,720 $152,900 $222,540 $244,080 $72,720 $619,520 Total Cash Disbursements 23 24 Cash Budget July $96,000 $210,600 $340,060 $314,500 $399,000 $405,500 $1,119,000 $410,500 $609,600 $745,560 $1,215,000 25 August September Quarter 26 27 Beginning Cash Balance $96,000 28 Add: Cash collection 29 Total Cash available 30 Less: Cash Disbursements $152,900 $222,540 $244,080 $47,000 31 Merchandise Inventory 32 Selling and administrative expenses $619,520 $47,000 $47,000 $141,000 $199,900 $269,540 $291,080 $210,600 $340,060 $454,480 Total Cash Disbursements $760,520 $454,480 33 34 Ending Cash Balance 35

A C D Cash Collection 1 July September August Quarter -SUM (B3D3) - SUM (B4D4) -SUM (B5D5) -SUM(B6.D6 =SUM(E3E6) 2 3 Accounts Receivable 139000 - 390000*45% -390000*55% - 410000 * 45 % 4 July month Sales 5 August month sales 6 September month sales 410000*55 % - 400000*45% =SUM(C3.C6) |-SUM(B3B6) |-SUM(D3D6) Total Cash Collections 7 8 Merchandise Purchase Budget July - 390000*60 % -C11 *20% -B11 + B12 September - 400000*60% -(420000*60 % )*20% =D11 + D12 August - 410000*60 % D11*20% Quarter -SUM(B11D11) 10 11 Cost of Goods Sold 12 Add: Ending Inventory - D12 - E11+ E12 -C11+C12 13 Total Needs 14 Less: Beginning Inventory 70200 =B12 -C12 -B14 - B13 - B14 - C13- C14 - D13- D14 -E13- E14 15 Merchandise Purchases 16 Cash Disbursements 17 July 89000 18 August September Quarter -SUM(B19D19) |=SUM(B20D20) |=SUM(B21D21) -SUM(B22D22) |=SUM(E19E22) 19 Accounts Payable 20 July month purchases - B15 * 30% -B15 70% 21 August month Purchases 22 September month purchases 23 Total Cash Disbursements - C15*30% -C15 70 % -D15 *30% -SUM(B19B22 )SUM(C19 C22)SUM(D19D22) 24 Cash Budget 25 July 96000 September |-С34 August -B34 Quarter =B27 26 27 Beginning Cash Balance -C7 -C27+C28 =SUM(B28D28) E27+E28 -B7 28 Add: Cash collection - D7 29 Total Cash available -B27+B28 = D27 + D28 30 Less: Cash Disbursements - C23 47000 ЕC31+С32 -SUM(B31D31) -SUM(B32:D32) -E31 +E32 31 Merchandise Inventory -B23 -D23 32 Selling and administrative expens-54000-7000 47000 - D31 + D32 -B31+ B32 Total Cash Disbursements 33 =E29-E33 34 Ending Cash Balance -B29-B33 ЕC29-С33 =D29-D33 35

G Income Statement 1 2 Sales Revenue $1,200,000 Less: Cost of Goods Sold $720,000 $480,000 3 4 Gross Profit 5 Less: Selling and Administrative Expense 6 Less: Depreciation $141,000 $21,000 $318,000 7 Net Income 8 Balance Sheet as on 30th September 10 11 Assets 12 Cash 13 Accounts Receivble $220,000 14 Inventory $50,400 15 Plant and equipment, net of depreciation $207,000 $477,400 16 Total Assets Liabilities and Stockholder's Equity 17 18 Accounts Payable $169,280 $333,000 19 Common Stock 20 Retained Earnings $429,200 21 Total Liabilities and stockholder's equity $931,480 22

G Income Statement 1 -390000+410000+400000 -H2*60% |-Н2-НЗ 2 Sales Revemue Less: Cost of Goods Sold Gross Profit 4 5 Less: Selling and Administrative Expense 6 Less: Depreciation - 47000*3 - 7000*3 ЕН4-Н5-Н6 7 Net Income 8 Balance Sheet as on 30th September 10 11 Assets 12 Cash - 400000*55% 13 Accounts Receivble - ( 420000*60 % )*20% - 228000-21000 14 Inventory 15 Plant and equipment, net of depreciation -SUM(H12H15) Liabilities and Stockholde r's Equity - 242000-72720 |333000 - 1 11200+H7 16 Total Assets 17 18 Accounts Payable 19 Common Stock 20 Retained Earnings 21 Total Liabilities and stockholder's equity -SUM(H18H20) 22

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