E8-13
Schedule of expected cash flow:
July August September Quarter
From accounts receivable $136,000 $136,000
From July Sales
45% $95,500 $95,500
55% $115,500 $115,500
From August Sales
45% $103,500 $103,500
55% $126,500 $126,500
From September Sales
45% $99,000 $99,000
Total Cash Collections $231,500 $219,000 $225,500 $675,000
Merchandise Purchases Budget:
July August September Total
Budgeted costs of goods sold $126,000 $138,000 $132,000 $396,000
Add desired ending merchandising inventory 27,600 26,400 28,800 28,800
Total needs $153,600 $164,400 $160,800 $424,800
Less beginning merchandise inventory 62,000 27,600 26,400 62,000
Required purchases $91,600 $136,800 $134,400 $362,800
Schedule of cash disbursements for purchases:
July August September Total
From accounts payable $71,100 $71,100
For July purchases 27,480 $64,120 91,600
For August purchases 41,040 $95,760 136,800
For September purchases 40,320 40,320
Total cash disbursements $98,580 $105,160 $136,080 $339,820
Beech Corporation
Income Statement
For the Quarter Ended September 30
Sales $660,000.00
Cost of goods sold 396,000
Gross margin $264,000.00