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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 $530,000 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 $530,000 for November, $540,000 for December, and $530,000 for January. Collections are expected to be 72% in the month of sale, 26% in the month following the sale, and 2% uncollectible. The cost of goods sold is 75% of sales. The company desires ending merchandise inventory to equal 70% 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 $24,000. Monthly depreciation is $23,000. Prepare a Schedule of Expected Cash Collections for November and December. (Leave no cells blank - be certain to enter "0" wherever required.) Prepare a Merchandise Purchases Budget for November and December. (Input all amount as positive values.) Prepare Cash Budgets for November and December. (Leave no cells blank - be certain to enter "0" wherever required. Input all amount as positive values.) Prepare Budgeted Income Statements for November and December. (Input all amount as positive values.) Prepare a Budgeted Balance Sheet for the end of December. (Be sure to list the asset and liabilities in order of their liquidity.)Step by Step Solution
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