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Please explain some of the calcualtions Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales
Please explain some of the calcualtions
Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $300,000 for November $320,000 for December, and $310,000 for January Collections are expected to be 75% in the month of sale, 22% in the month following the sale, and 3% uncollectible The cost of goods sold is 76% of sales. The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $20,400 Monthly depreciation is $15,400 Ignore taxes Balance Sheet October 31 Assets Cash 21.400 Accounts receivable (net of allowance for uncollectible accounts) 81,400 182,400 Merchandise Inventory Property, plant and equipment (net of $654,000 accumulated depreciation) 1,170,000 1,455,200 Total assets Liabilities and Stockholders' Equity 198,400 Accounts payable Common stock 770,000 Retained earnings 486,800 1,455,200 Total liabilities and stockholders' equityStep by Step Solution
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