SlideShare a Scribd company logo
1 of 1
Download to read offline
Required information [The foliowing information applies to the questions displyed below] Becch
Corporation is a merchandising company that is preparing a master budget for the third quarter of
the catendar yeac. The company's bolance shoet os of June 30th is shown below.Beech's
managers have made the following additional assumptions and estimates: 1. Estimoted sales for
July, August, September, and October will be $370,000,$390,000,$380,000, and $400,000,
respectively. 2. All sales are on credit and all credit sates 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 months ending inventory must
equal 30% of the cost of next month's sales. The cost of goods sold is 75% of sales. The company
pays for 40o of its merchandise purchases in the month of the purchase and the remaining 60% in
the month following the purchase. Al of the accounts payable at June 30 will be pald in July. 4.
Monthly selling and administrative expenses are always $50,000. Each month $7,000 of this total
amount is depreciotion expense and the remaining $43,000 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 duting the quarter ended September 30. This is a great
"review" problem that allows you to prepare several budgets & schedules that are part of a
company's master budiget. You will start with the sales budget (including cash coliections) and
continue through to the budget income statement and balance sheet. 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 Septembec Also compute total merchandise purchases for the quarter ended
September 30 . 2.b. Prepare a scheduie of expected cash disbursements for merchandise
purchases for July. August, and September. Also compute total cosh 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 300

More Related Content

More from abeerafashion

Given the following disk specifications 7200 RPM 5ms a.pdf
Given the following disk specifications  7200 RPM  5ms a.pdfGiven the following disk specifications  7200 RPM  5ms a.pdf
Given the following disk specifications 7200 RPM 5ms a.pdfabeerafashion
 
Hello I hope you are doing well Would you be able to combi.pdf
Hello I hope you are doing well Would you be able to combi.pdfHello I hope you are doing well Would you be able to combi.pdf
Hello I hope you are doing well Would you be able to combi.pdfabeerafashion
 
Briefly discuss the formation and structure of new oceanic c.pdf
Briefly discuss the formation and structure of new oceanic c.pdfBriefly discuss the formation and structure of new oceanic c.pdf
Briefly discuss the formation and structure of new oceanic c.pdfabeerafashion
 
7 10 points Let fx and gx be concave but not necessa.pdf
7 10 points Let fx and gx be concave but not necessa.pdf7 10 points Let fx and gx be concave but not necessa.pdf
7 10 points Let fx and gx be concave but not necessa.pdfabeerafashion
 
1 If X equals the number of ones and Y the number of twos a.pdf
1 If X equals the number of ones and Y the number of twos a.pdf1 If X equals the number of ones and Y the number of twos a.pdf
1 If X equals the number of ones and Y the number of twos a.pdfabeerafashion
 
5 abbcdd SaABCBCAbABcCCd.pdf
5 abbcdd SaABCBCAbABcCCd.pdf5 abbcdd SaABCBCAbABcCCd.pdf
5 abbcdd SaABCBCAbABcCCd.pdfabeerafashion
 
An example of artificialinduced passive immunity would be G.pdf
An example of artificialinduced passive immunity would be G.pdfAn example of artificialinduced passive immunity would be G.pdf
An example of artificialinduced passive immunity would be G.pdfabeerafashion
 
a Find the optimal quantity of the public good that would .pdf
a Find the optimal quantity of the public good that would .pdfa Find the optimal quantity of the public good that would .pdf
a Find the optimal quantity of the public good that would .pdfabeerafashion
 
9 Cul de los siguientes NO es un problema asociado con la.pdf
9 Cul de los siguientes NO es un problema asociado con la.pdf9 Cul de los siguientes NO es un problema asociado con la.pdf
9 Cul de los siguientes NO es un problema asociado con la.pdfabeerafashion
 
do by handwriting Continuous random variable X has th.pdf
do by handwriting     Continuous random variable X has th.pdfdo by handwriting     Continuous random variable X has th.pdf
do by handwriting Continuous random variable X has th.pdfabeerafashion
 
El sndrome de Leigh tiene varios modos de herencia y es inc.pdf
El sndrome de Leigh tiene varios modos de herencia y es inc.pdfEl sndrome de Leigh tiene varios modos de herencia y es inc.pdf
El sndrome de Leigh tiene varios modos de herencia y es inc.pdfabeerafashion
 
5 The Federal Reserves organization There are Federal Rese.pdf
5 The Federal Reserves organization There are Federal Rese.pdf5 The Federal Reserves organization There are Federal Rese.pdf
5 The Federal Reserves organization There are Federal Rese.pdfabeerafashion
 
Aleem has the following preferences If it is raining he pre.pdf
Aleem has the following preferences If it is raining he pre.pdfAleem has the following preferences If it is raining he pre.pdf
Aleem has the following preferences If it is raining he pre.pdfabeerafashion
 
1 Please describe Continuous Positive Airway Pressure Thera.pdf
1 Please describe Continuous Positive Airway Pressure Thera.pdf1 Please describe Continuous Positive Airway Pressure Thera.pdf
1 Please describe Continuous Positive Airway Pressure Thera.pdfabeerafashion
 
During eye development a region of the developing brain gro.pdf
During eye development a region of the developing brain gro.pdfDuring eye development a region of the developing brain gro.pdf
During eye development a region of the developing brain gro.pdfabeerafashion
 
Deminge gre aadakilerden hangisi kalite liderliinin temel .pdf
Deminge gre aadakilerden hangisi kalite liderliinin temel .pdfDeminge gre aadakilerden hangisi kalite liderliinin temel .pdf
Deminge gre aadakilerden hangisi kalite liderliinin temel .pdfabeerafashion
 
Cul de las siguientes no es una funcin de los mercados fi.pdf
Cul de las siguientes no es una funcin de los mercados fi.pdfCul de las siguientes no es una funcin de los mercados fi.pdf
Cul de las siguientes no es una funcin de los mercados fi.pdfabeerafashion
 
Question 11g22 and 1 Grien is a structure that grinds and .pdf
Question 11g22 and 1 Grien is a structure that grinds and .pdfQuestion 11g22 and 1 Grien is a structure that grinds and .pdf
Question 11g22 and 1 Grien is a structure that grinds and .pdfabeerafashion
 
3 Voluntary contributions toward a public good Dina and Jua.pdf
3 Voluntary contributions toward a public good Dina and Jua.pdf3 Voluntary contributions toward a public good Dina and Jua.pdf
3 Voluntary contributions toward a public good Dina and Jua.pdfabeerafashion
 
Tony Sopranos dog ran away so Tony posted flyers around th.pdf
Tony Sopranos dog ran away so Tony posted flyers around th.pdfTony Sopranos dog ran away so Tony posted flyers around th.pdf
Tony Sopranos dog ran away so Tony posted flyers around th.pdfabeerafashion
 

More from abeerafashion (20)

Given the following disk specifications 7200 RPM 5ms a.pdf
Given the following disk specifications  7200 RPM  5ms a.pdfGiven the following disk specifications  7200 RPM  5ms a.pdf
Given the following disk specifications 7200 RPM 5ms a.pdf
 
Hello I hope you are doing well Would you be able to combi.pdf
Hello I hope you are doing well Would you be able to combi.pdfHello I hope you are doing well Would you be able to combi.pdf
Hello I hope you are doing well Would you be able to combi.pdf
 
Briefly discuss the formation and structure of new oceanic c.pdf
Briefly discuss the formation and structure of new oceanic c.pdfBriefly discuss the formation and structure of new oceanic c.pdf
Briefly discuss the formation and structure of new oceanic c.pdf
 
7 10 points Let fx and gx be concave but not necessa.pdf
7 10 points Let fx and gx be concave but not necessa.pdf7 10 points Let fx and gx be concave but not necessa.pdf
7 10 points Let fx and gx be concave but not necessa.pdf
 
1 If X equals the number of ones and Y the number of twos a.pdf
1 If X equals the number of ones and Y the number of twos a.pdf1 If X equals the number of ones and Y the number of twos a.pdf
1 If X equals the number of ones and Y the number of twos a.pdf
 
5 abbcdd SaABCBCAbABcCCd.pdf
5 abbcdd SaABCBCAbABcCCd.pdf5 abbcdd SaABCBCAbABcCCd.pdf
5 abbcdd SaABCBCAbABcCCd.pdf
 
An example of artificialinduced passive immunity would be G.pdf
An example of artificialinduced passive immunity would be G.pdfAn example of artificialinduced passive immunity would be G.pdf
An example of artificialinduced passive immunity would be G.pdf
 
a Find the optimal quantity of the public good that would .pdf
a Find the optimal quantity of the public good that would .pdfa Find the optimal quantity of the public good that would .pdf
a Find the optimal quantity of the public good that would .pdf
 
9 Cul de los siguientes NO es un problema asociado con la.pdf
9 Cul de los siguientes NO es un problema asociado con la.pdf9 Cul de los siguientes NO es un problema asociado con la.pdf
9 Cul de los siguientes NO es un problema asociado con la.pdf
 
do by handwriting Continuous random variable X has th.pdf
do by handwriting     Continuous random variable X has th.pdfdo by handwriting     Continuous random variable X has th.pdf
do by handwriting Continuous random variable X has th.pdf
 
El sndrome de Leigh tiene varios modos de herencia y es inc.pdf
El sndrome de Leigh tiene varios modos de herencia y es inc.pdfEl sndrome de Leigh tiene varios modos de herencia y es inc.pdf
El sndrome de Leigh tiene varios modos de herencia y es inc.pdf
 
5 The Federal Reserves organization There are Federal Rese.pdf
5 The Federal Reserves organization There are Federal Rese.pdf5 The Federal Reserves organization There are Federal Rese.pdf
5 The Federal Reserves organization There are Federal Rese.pdf
 
Aleem has the following preferences If it is raining he pre.pdf
Aleem has the following preferences If it is raining he pre.pdfAleem has the following preferences If it is raining he pre.pdf
Aleem has the following preferences If it is raining he pre.pdf
 
1 Please describe Continuous Positive Airway Pressure Thera.pdf
1 Please describe Continuous Positive Airway Pressure Thera.pdf1 Please describe Continuous Positive Airway Pressure Thera.pdf
1 Please describe Continuous Positive Airway Pressure Thera.pdf
 
During eye development a region of the developing brain gro.pdf
During eye development a region of the developing brain gro.pdfDuring eye development a region of the developing brain gro.pdf
During eye development a region of the developing brain gro.pdf
 
Deminge gre aadakilerden hangisi kalite liderliinin temel .pdf
Deminge gre aadakilerden hangisi kalite liderliinin temel .pdfDeminge gre aadakilerden hangisi kalite liderliinin temel .pdf
Deminge gre aadakilerden hangisi kalite liderliinin temel .pdf
 
Cul de las siguientes no es una funcin de los mercados fi.pdf
Cul de las siguientes no es una funcin de los mercados fi.pdfCul de las siguientes no es una funcin de los mercados fi.pdf
Cul de las siguientes no es una funcin de los mercados fi.pdf
 
Question 11g22 and 1 Grien is a structure that grinds and .pdf
Question 11g22 and 1 Grien is a structure that grinds and .pdfQuestion 11g22 and 1 Grien is a structure that grinds and .pdf
Question 11g22 and 1 Grien is a structure that grinds and .pdf
 
3 Voluntary contributions toward a public good Dina and Jua.pdf
3 Voluntary contributions toward a public good Dina and Jua.pdf3 Voluntary contributions toward a public good Dina and Jua.pdf
3 Voluntary contributions toward a public good Dina and Jua.pdf
 
Tony Sopranos dog ran away so Tony posted flyers around th.pdf
Tony Sopranos dog ran away so Tony posted flyers around th.pdfTony Sopranos dog ran away so Tony posted flyers around th.pdf
Tony Sopranos dog ran away so Tony posted flyers around th.pdf
 

Recently uploaded

Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxAshokKarra1
 
Food processing presentation for bsc agriculture hons
Food processing presentation for bsc agriculture honsFood processing presentation for bsc agriculture hons
Food processing presentation for bsc agriculture honsManeerUddin
 
4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptx4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptxmary850239
 
Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)Mark Reed
 
Integumentary System SMP B. Pharm Sem I.ppt
Integumentary System SMP B. Pharm Sem I.pptIntegumentary System SMP B. Pharm Sem I.ppt
Integumentary System SMP B. Pharm Sem I.pptshraddhaparab530
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxiammrhaywood
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management SystemChristalin Nelson
 
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATIONTHEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATIONHumphrey A Beña
 
ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...
ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...
ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...JojoEDelaCruz
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parentsnavabharathschool99
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course  for BeginnersFull Stack Web Development Course  for Beginners
Full Stack Web Development Course for BeginnersSabitha Banu
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPCeline George
 
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY -  GERBNER.pptxAUDIENCE THEORY -CULTIVATION THEORY -  GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptxiammrhaywood
 
GRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTS
GRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTSGRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTS
GRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTSJoshuaGantuangco2
 
4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptx4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptxmary850239
 
Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Celine George
 
Barangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptxBarangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptxCarlos105
 
ROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptxROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptxVanesaIglesias10
 

Recently uploaded (20)

Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptx
 
Food processing presentation for bsc agriculture hons
Food processing presentation for bsc agriculture honsFood processing presentation for bsc agriculture hons
Food processing presentation for bsc agriculture hons
 
4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptx4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptx
 
Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)
 
Integumentary System SMP B. Pharm Sem I.ppt
Integumentary System SMP B. Pharm Sem I.pptIntegumentary System SMP B. Pharm Sem I.ppt
Integumentary System SMP B. Pharm Sem I.ppt
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management System
 
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATIONTHEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
 
ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...
ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...
ENG 5 Q4 WEEk 1 DAY 1 Restate sentences heard in one’s own words. Use appropr...
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parents
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course  for BeginnersFull Stack Web Development Course  for Beginners
Full Stack Web Development Course for Beginners
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERP
 
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY -  GERBNER.pptxAUDIENCE THEORY -CULTIVATION THEORY -  GERBNER.pptx
AUDIENCE THEORY -CULTIVATION THEORY - GERBNER.pptx
 
GRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTS
GRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTSGRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTS
GRADE 4 - SUMMATIVE TEST QUARTER 4 ALL SUBJECTS
 
4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptx4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptx
 
Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17
 
Barangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptxBarangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptx
 
ROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptxROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptx
 
YOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptx
YOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptxYOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptx
YOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptx
 
LEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptx
LEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptxLEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptx
LEFT_ON_C'N_ PRELIMS_EL_DORADO_2024.pptx
 

Required information The foliowing information applies to t.pdf

  • 1. Required information [The foliowing information applies to the questions displyed below] Becch Corporation is a merchandising company that is preparing a master budget for the third quarter of the catendar yeac. The company's bolance shoet os of June 30th is shown below.Beech's managers have made the following additional assumptions and estimates: 1. Estimoted sales for July, August, September, and October will be $370,000,$390,000,$380,000, and $400,000, respectively. 2. All sales are on credit and all credit sates 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 months ending inventory must equal 30% of the cost of next month's sales. The cost of goods sold is 75% of sales. The company pays for 40o of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. Al of the accounts payable at June 30 will be pald in July. 4. Monthly selling and administrative expenses are always $50,000. Each month $7,000 of this total amount is depreciotion expense and the remaining $43,000 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 duting the quarter ended September 30. This is a great "review" problem that allows you to prepare several budgets & schedules that are part of a company's master budiget. You will start with the sales budget (including cash coliections) and continue through to the budget income statement and balance sheet. 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 Septembec Also compute total merchandise purchases for the quarter ended September 30 . 2.b. Prepare a scheduie of expected cash disbursements for merchandise purchases for July. August, and September. Also compute total cosh 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 300