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2. (12 points) Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: The company sells each
2. (12 points) Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: The company sells each unit for $45 Budgetcd Sales: Month October November December Jan Sales in Units 30,00025,000 Collections are expected to be 70% in the month of sale, 30% in the month following the sale. 40,000 30,000 The A/R balance at September 30th will be collected in full in October The cost of the merchandise is $32 per unit. In addition to meeting the current month's sales demand, management wants to maintain and ending inventory balance of 10% of the next month's sales. The ending inventory balance at September 30th is 3,000 units. Payment for merchandise is made as follows: 2 paid in the month of the purchase, % paid the month following the purchase. .The A/P balance at September 30th will be paid in full in October Other monthly expenses to be paid in cash are $300,000
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