Wheeling company is merend Balance Sheet Buildings and w ent, net of depreciation Liabilities and stockholders wity rained ang Total 11lities and stockholders equity The company in the process of preparing a budget for October and has assembled the following 1 Sales are budgeted $400,000 for October and $410,000 for November of these soles, 36% be for cash the remainder will be credit sales. Forty percent of a months credit sales are collected in the month the sales are made and the remaining 60. collected in the following month All of the September 30 accounts receivable w e collected in October 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following months cost of goods sold 3. Al merchandise purchases are on account. Thirty percent of all purchases we paid for in the month of purchase and 70% are paid for in the following month. All of the September accounts payee to suppliers will be paid during October 4. Selling and administrative expenses for October are budgeted a $6.000, exclusive of depreciation. These expenses will be paid In cash Depreciation is budgeted at $2790 for the month Required: 11. Using the information provided, calculate or prepare the following a The budgeted cash collections for October The puogered merchandise purchases for October c. The budgeted cash disbursements for merchandise purchases for October d. The budgeted net operating income for October e A budgeted balance sheet at October 31 2. Assume the following changes to the underlying buong assumptions mos of month's credit sales are collected in the month s are made and the remaining 50s collected in the following month the ending merchandise Inventory is always 10% of the following month's cost of goods sold, and 20% of all purchases are pard for in the month of purchase and 80% are paid for in the following month Using these new assumptions, coiculate or prepare the following The budgeted cash conections for October The budgeted merchandise purchases for October The budgeted cash disbursements for merchandise purchases for October d Net operating income for the month of October e. A budgeted balance sheet at October 31 Type here to search e @* NOW 9 Wheeling Company is a merchandiser that provided a balance sheet as of September 20 as shown below Wheeling company Balance Sheet September 20 $ 71,00 Accounts receivable Buildings and equipment, net of depreciation Total assets Liabilities and stockholders' Equity Accounts payable Total liabilities and stockholders' equity The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $400,000 for October and $410.000 for November of these sales. 35% will be for cash: the remainder wil be credt sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60 collected in the following month. All of the September 30 accounts receivable will be collected in October 2. The budgeted cost of goods sold is always 45 of sales and the ending merchandise inventory is always 30% of the following months cost of goods sold. 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70 are paid for in the following month. Al of the September 30 accounts payable to suppliers wil be paid during October 4. Seling and administrative expenses for October are budgeted at 586.000, exclusive of depreciation. These expenses will be paid in cash Depreciation is budgeted at $2.790 for the month Required: 1. Using the information provided. calculate or prepare the following a. The budgeted cash collections for October b. The budgeted merchandise purchases for October c. The budgeted cash disbursements for merchandise purchases for October The budgeted net operating income for October e. A budgeted balance sheet at October 31 2 Assume the following changes to the underlying budgeting assumptions 50% of a month's credit sales are collected in the month the sales are made and the remaining 50is collected in the following month, 2 the ending merchandise inventory is always 10% of the following month's cost of goods sold, and 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month Using these new assumponscalculate or prepare the following a. The budgeted cash collections for October b. The budgeted merchandise purchases for October The budgeted cash asbursements for merchandise purchases for October d. Net operating income for the month of October e. A budgeed balance sheet of October 31 (Ctrl - Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 71,600 122,000 54,000 279,000 526,600 $ $ 155,600 216,000 155,000 $ 526,600 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $400,000 for October and $410,000 for November. Of these sales, 35% will be for cash: the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October 4. Selling and administrative expenses for October are budgeted at $86,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budaeted at $2.790 for the month Type here to search Mode - Delay Required: 1. Using the information provided, calculate or prepare the following: a. The budgeted cash collections for October b. The budgeted merchandise purchases for October c. The budgeted cash disbursements for merchandise purchases for October d. The budgeted net operating income for October e. A budgeted balance sheet at October 31. 2. Assume the following changes to the underlying budgeting assumptions: (1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following: a. The budgeted cash collections for October b. The budgeted merchandise purchases for October c. The budgeted cash disbursements for merchandise purchases for October. d. Net operating income for the month of October e. A budgeted balance sheet at October 31. Type here to search