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Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November,
Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 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 72% of sales The company desires ending merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $21,300 Monthly depreciation is $16,300 . Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Merchandise Inventory Property, plant and equipment (net of $661,000 accumulated depreciation) $ 22,300 82,300 201,600 1,170,000 Total assets $ 1,476,200 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 199,300 870,000 406,900
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