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The following information was taken from the September financialstatements of the Ofelia Corporation. Determine the net dollaramount by which resources increased through management activitiesin September.

Assets, September 30

$460,000

Common Stock, September 30

$70,000

Dividends, September 1 through September 30

$15,000

Expenses, September 1 through September 30

$140,000

Liabilities, September 30

$330,000

Retained Earnings, September 30

$60,000

Revenues, September 1 through September 30

$190,000
a.

$50,000
b.

$60,000
c.

$70,000
d.

$35,000

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Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

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The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances as of September 30, 2017 (with the exception of retained earnings, which is the balance on September 1, 2017), and the amounts shown for income statement items are balances for the month ended September 30, 2017.

Accounts payable $17,600 Furniture and fixtures $34,000
Accounts receivable 6,410 Land 26,000
Advertising expense 14,500 Notes payable 20,000
Buildings 60,000 Projection equipment 25,000
Capital stock 50,000 Rent expense—movies 50,600
Cash 15,230 Retained earnings 73,780
Concessions revenue 60,300 Salaries and wages expense 46,490
Cost of concessions sold 23,450 Ticket sales 95,100
Dividends paid during the month 8,400 Water, gas, and electricity 6,700

1. Using the data given, prepare an income statement for the month ended September 30, 2017.

Maple Park Theatres Corp.
Income Statement
For The Month Ended September 30, 2017
Revenues:
Ticket sales $
Total revenues $
Expenses:
$
Total expenses
$

2. Using the data given, prepare a statement of retained earnings for the month ended September 30, 2017.

Maple Park Theatres Corp.
Statement Of Retained Earnings
For The Month Ended September 30, 2017
$
$

3. Using the data given, prepare a balance sheet at September 30, 2017.

Maple Park Theatres Corp.
Balance Sheet
September 30, 2017
Assets
$
Total assets $
Liabilities and stockholders' equity
$
Total liabilities and stockholders' equity $

4. You have $1,000 to invest. You want to use it to buy stock in Maple Park? Which of the following information would you least consider before making a final decision?

1. Whether the company is operating at a profit?
2. The amount of dividends paid by the company.
3. The amount of salaries the company pays.
4. Current market price of the stock.

Beech Corporation is a merchandising company that is preparing amaster budget for the third quarter of the calendar year. Thecompany’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 ofdepreciation 219,000
Total assets $ 484,000
Liabilitiesand Stockholders’ Equity
Accounts payable $ 80,000
Common stock 330,000
Retained earnings 74,000
Total liabilities andstockholders’ equity $ 484,000


Beech’s managers have made the following additional assumptionsand estimates:

-Estimated sales for July, August, September, and October willbe $300,000, $320,000, $310,000, and $330,000, respectively.

-All sales are on credit and all credit sales are collected.Each month’s credit sales are collected 35% in the month of saleand 65% in the month following the sale. All of the accountsreceivable at June 30 will be collected in July.

-Each month’s ending inventory must equal 25% of the cost ofnext month’s sales. The cost of goods sold is 60% of sales. Thecompany pays for 40% of its merchandise purchases in the month ofthe purchase and the remaining 60% in the month following thepurchase. All of the accounts payable at June 30 will be paid inJuly.

-Monthly selling and administrative expenses are always $56,000.Each month $6,000 of this total amount is depreciation expense andthe remaining $50,000 relates to expenses that are paid in themonth they are incurred.

-The company does not plan to borrow money or pay or declaredividends during the quarter ended September 30. The company doesnot plan to issue any common stock or repurchase its own stockduring 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 thequarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August,and September. Also compute total merchandise purchases for thequarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements formerchandise purchases for July, August, and September. Also computetotal cash disbursements for merchandise purchases for the quarterended September 30.

3. Prepare an income statement for the quarter ended September30.

4. Prepare a balance sheet as of September 30.

[The following informationapplies to the questions displayed below.]

Beech Corporation is a merchandising company that is preparing amaster budget for the third quarter of the calendar year. Thecompany’s balance sheet as of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash $ 81,000
Accountsreceivable 132,000
Inventory 56,250
Plant and equipment,net of depreciation 214,000
Total assets $ 483,250
Liabilities and Stockholders’ Equity
Accountspayable $ 75,000
Common stock 346,000
Retainedearnings 62,250
Total liabilitiesand stockholders’ equity $ 483,250


alue:
10.00 points

Required information

Beech’s managers have made thefollowing additional assumptions and estimates:
1.

Estimated sales for July, August, September, and October will be$250,000, $270,000, $260,000, and $280,000, respectively.
2.

All sales are on credit and all credit sales are collected. Eachmonth’s credit sales are collected 45% in the month of sale and 55%in the month following the sale. All of the accounts receivable atJune 30 will be collected in July.
3.

Each month’s ending inventory must equal 20% of the cost of nextmonth’s sales. The cost of goods sold is 75% of sales. The companypays for 30% of its merchandise purchases in the month of thepurchase 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 $46,000.Each month $5,000 of this total amount is depreciation expense andthe remaining $41,000 relates to expenses that are paid in themonth they are incurred.
5.

The company does not plan to borrow money or pay or declaredividends during the quarter ended September 30. The company doesnot plan to issue any common stock or repurchase its own stockduring 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 thequarter ended September 30.

Schedule of Expected Cash Collections
Month
July August September Quarter
From accounts receivable $0
From July sales 0
From August sales 0
From September sales 0
Total cash collections $0 $0 $0 $0
2-a.

Prepare a merchandise purchases budget for July, August, andSeptember. Also compute total merchandise purchases for the quarterended September 30.


Merchandise Purchases Budget
July August September Total
Budgeted cost of goodssold
Total needs
Required purchases
2-b.

Prepare a schedule of expected cash disbursements formerchandise purchases for July, August, and September. Also computetotal cash disbursements for merchandise purchases for the quarterended September 30.


Schedule of Cash Disbursements for Purchases
July August September Total
From accounts payable $0
From July purchases 0
From August purchases 0
From September purchases 0
Total cash disbursements $0 $0 $0 $0
3

4.Prepare a balance sheet as of September 30.

Beech Corporation
Balance Sheet
September 30
Assets
Cash
Accounts receivable
Inventory
Plant and equipment, net
Total assets $0
Liabilities and Stockholders'Equity
Accounts payable
Common stock
Retained earnings
Total liabilities andstockholders' equity $0
.

Prepare an income statement for the quarter ended September30.

Beech Corporation
Income Statement
For the Quarter Ended September 30
Sales
Cost of goods sold
Gross margin 0
Selling and administrative expenses
Net operating income 0
Interest expense
Net income $0

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