Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
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
$ 93,000
Accounts receivable
127,000
Inventory
45,000
Plant and equipment, net of depreciation
219,000
Total assets
$ 484,000
Liabilities and Stockholders' Equity
Accounts payable
$ 80,000
Common stock
330,000
Retained earnings
74,000
Total liabilities and stockholders' equity
Required information
Beech's managers have made the following additional assumptions and estimates:
1.
Estimated sales for July, August, September, and October will be $300,000, $320,000, $310,000, and $330,000, respectively.
2.
All sales are on credit and all credit sales 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 month's ending inventory must equal 25% of the cost of next month's sales. The cost of goods sold is 60% 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 at June 30 will be paid in July.
4.
Monthly selling and administrative expenses are always $56,000. Each month $6,000 of this total amount is depreciation expense and the remaining $50,000 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.
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.
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.
The activity method of depreciation and For income statement purposes, depreciation is a variable expense if the depreciation method
A Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. Prepare the January 2014 income statement for management. Assume selling and administr..
Company XWZ raised $250 million in new debt and used this to buy back stock. After the recapitalization, Company XWZ’s stock price is $7.25. If XWZ Corp. had 70 million shares of stock before the recapitalization, how many shares does it have after t..
What amount of dividends will a shareholder owning 100 shares receive in 2011 if Emily pays $1,000,000 in dividends?
Based on the financial information provided-calculate the following ratios and explain their purpose
During 2011, Adams reported income of $200,000 and paid dividends of $80,000. On January 2, 2012, Watts sold 5,000 shares for $125,000. Illustrate what was the balance in the investment account after the shares had been sold?
How are the effects of these transactions reported on the statement of cash flows and how are the effects of these transactions reported on the statement of cash flows?
Compute the total cost of the work in process inventory on January 31 and compute the cost of jobs completed during January, and present the proper journal entry to reflect job completion.
During 2015, Rindal Vinyards Inc. had EBITDA of $1000, Depreciation and Amortization Expense of $200, Interest Expense of $100, and Tax Expense of $50. What was Rindal Vinyards Net Income in 2015?
The Sneed Corporation issues 10,000 shares of $50 par value preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to:
If result is positive it means there will be some inflow and it will be recognized only after result but if result may affect the financial statements then separate disclosure is required.
If the demand of unskilled labor were inelastic, would the proposed increase in the minimum wage raise or lower total wage payments to unskilled workers? Would your answer changeif the demand for unskilled labor were elastic?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd