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

$ 484,000

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.