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Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $330,000 for November,
Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $330,000 for November, $350,000 for December, and $340,000 for January. Collections are expected to be 80% in the month of sale, 18% in the month following the sale, and 2% uncollectible The cost of goods sold is 70% of sales. The company desires an ending merchandise inventory equal to 70% 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 $21,100. Monthly depreciation is $16,100. Ignore taxes Balance Sheet October 31 Assets Cash 22,100 Accounts receivable (net of allowance for uncollectible accounts) 82,100 161,700 Merchandise Inventory Property, plant and equipment (net of $659,000 accumulated depreciation) 1.170,000 1,435,900 Total assets Liabilities and Stockholders' Equity Accounts payable 1 99,100 850,000 Common stock Retained earnings 386,800 1,435,900 Total liabilities and stockholders' equity
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