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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.
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. Collections are expected to be 70% in the month of sale, 30% in the month following the sale. 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 2, 625 units. Payment for merchandise is made as follows: 1/2 paid in the month of the purchase, 1/2 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. Prepare a Sales Budget for October, November and December. Prepare a Schedule of Expected Cash Collections for October, November and December. Prepare a Merchandise Purchases Budget for October, November and December. d. Prepare a Schedule of Expected Cash Disbursements for October, November and December. e. Prepare Cash Budgets for October, November and December
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