Beech Corporation is a merchandising company………………………: ***Please I want a correct answers
Show transcribed image textBeech’s managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $230,000, $250,000, $240,000, and 2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in $260,000, respectively the month of sale and 55% 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 20% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% 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 $42,000. Each month $7,000 of this total amount is depreciation expense and the remaining S35,000 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. Also compute total cash collections for the quarter ended September 30 Answer is complete and correct. Schedule of Expected Cash Collections Month From accounts receivable From July sales From August sales From September sales Total cash collections AugustSeptember Quarter $134,000 230,000 112,500137,500250,000 108,000 108,000 245,500722,000 134,000 103,500 126,5000 237,500 239,000
