Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

	Sales are budgeted at $370,000 for November, $390,000 for December, and $380,000 for January.
	Collections are expected to be 80% in the month of sale, 16% in the month following the sale, and 4% uncollectible.
	The cost of goods sold is 74% 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 $21,500.
	Monthly depreciation is $16,500.
	Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	22,500
Accounts receivable (net of allowance for uncollectible accounts)		82,500
Merchandise Inventory		219,040
Property, plant and equipment (net of $663,000 accumulated depreciation)		1,170,000
Total assets	$	1,494,040
Liabilities and Stockholders Equity
Accounts payable	$	199,500
Common stock		890,000
Retained earnings		404,540
Total liabilities and stockholders equity	$	1,494,040

Required:

a.	Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Schedule of Expected Cash Collections
	November	December
Sales	$	$
Schedule of Expected Cash Collections
Accounts receivable	$
November sales		$
December sales
Total cash collections	$	$

b.	Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.)
		Welnor Industrial Gas Corporation Merchandise Purchases Budget
			November	December
		Budgeted cost of goods sold	$	$

: Click to select

Total needs

: Click to select

		Required purchase	$	$
c.	Prepare Cash Budgets for November and December. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Cash Budget
	November	December
Cash disbursements for merchandise	$	$
Other monthly cash expenses
Total cash disbursements	$	$
Cash balance, beginning	$	$
Add cash receipts
Total cash available
Less cash disbursement
Excess (deficiency) of cash available over disbursements
Financing
Cash balance, ending	$	$

d.	Prepare Budgeted Income Statements for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Budgeted Income Statement
	November	December

Click to select $	$

Click to select

Click to select

Click to select

Click to select

Click to select

Click to select $	$

e.	Prepare a Budgeted Balance Sheet for the end of December. (Be sure to enter your answers in the order of liquidity. Input all amounts as positive values. Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Budgeted Balance Sheet December 31
Assets

Click to select

Click to select

Click to select

Click to Select Click to select

Total assets
Liabilities and Stockholders Equity

Click to select

Click to Select

Click to select
Total liabilities and stockholders equity

rev: 03_19_2016_QC_CS-44344

Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

	Sales are budgeted at $370,000 for November, $390,000 for December, and $380,000 for January.
	Collections are expected to be 80% in the month of sale, 16% in the month following the sale, and 4% uncollectible.
	The cost of goods sold is 74% 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 $21,500.
	Monthly depreciation is $16,500.
	Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	22,500
Accounts receivable (net of allowance for uncollectible accounts)		82,500
Merchandise Inventory		219,040
Property, plant and equipment (net of $663,000 accumulated depreciation)		1,170,000
Total assets	$	1,494,040
Liabilities and Stockholders Equity
Accounts payable	$	199,500
Common stock		890,000
Retained earnings		404,540
Total liabilities and stockholders equity	$	1,494,040

Required:

a.	Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Schedule of Expected Cash Collections
	November	December
Sales	$	$
Schedule of Expected Cash Collections
Accounts receivable	$
November sales		$
December sales
Total cash collections	$	$

b.	Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.)
		Welnor Industrial Gas Corporation Merchandise Purchases Budget
			November	December
		Budgeted cost of goods sold	$	$

: Click to select

Total needs

: Click to select

		Required purchase	$	$
c.	Prepare Cash Budgets for November and December. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Cash Budget
	November	December
Cash disbursements for merchandise	$	$
Other monthly cash expenses
Total cash disbursements	$	$
Cash balance, beginning	$	$
Add cash receipts
Total cash available
Less cash disbursement
Excess (deficiency) of cash available over disbursements
Financing
Cash balance, ending	$	$

d.	Prepare Budgeted Income Statements for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Budgeted Income Statement
	November	December

Click to select $	$

Click to select

Click to select

Click to select

Click to select

Click to select

Click to select $	$

e.	Prepare a Budgeted Balance Sheet for the end of December. (Be sure to enter your answers in the order of liquidity. Input all amounts as positive values. Omit the "$" sign in your response.)

Welnor Industrial Gas Corporation Budgeted Balance Sheet December 31
Assets

Click to select

Click to select

Click to select

Click to Select Click to select

Total assets
Liabilities and Stockholders Equity

Click to select

Click to Select

Click to select
Total liabilities and stockholders equity

rev: 03_19_2016_QC_CS-44344