Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribedimage text in transcribedimage text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Market Contact Audit

Authors: Gerardus Blokdyk

2nd Edition

0655179771, 978-0655179771

More Books

Students also viewed these Accounting questions