Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January.Collections are expected to be 85% in the month of sale and 15% in the month following the sale.The cost of goods sold is 60% of sales.The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month.Payment for merchandise is made in the month following the purchase.Other monthly expenses to be paid in cash are $21,200.Monthly depreciation is $21,000.Ignore taxes.
Required:a. Prepare a Schedule of Expected Cash Collections for November and December.b. Prepare a Merchandise Purchases Budget for November and December.c. Prepare Cash Budgets for November and December.d. Prepare Budgeted Income Statements for November and December.e. Prepare a Budgeted Balance Sheet for the end of December.

Question

Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January.Collections are expected to be 85% in the month of sale and 15% in the month following the sale.The cost of goods sold is 60% of sales.The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month.Payment for merchandise is made in the month following the purchase.Other monthly expenses to be paid in cash are $21,200.Monthly depreciation is $21,000.Ignore taxes.
  Required:a. Prepare a Schedule of Expected Cash Collections for November and December.b. Prepare a Merchandise Purchases Budget for November and December.c. Prepare Cash Budgets for November and December.d. Prepare Budgeted Income Statements for November and December.e. Prepare a Budgeted Balance Sheet for the end of December.

Quizplus · Accepted Answer

The Answer of Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January.Collections are expected to be 85% in the month of sale and 15% in the month following the sale.The cost of goods sold is 60% of sales.The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month.Payment for merchandise is made in the month following the purchase.Other monthly expenses to be paid in cash are $21,200.Monthly depreciation is $21,000.Ignore taxes.
  Required:a. Prepare a Schedule of Expected Cash Collections for November and December.b. Prepare a Merchandise Purchases Budget for November and December.c. Prepare Cash Budgets for November and December.d. Prepare Budgeted Income Statements for November and December.e. Prepare a Budgeted Balance Sheet for the end of December.

Weller Industrial Gas Corporation Supplies Acetylene and Other Compressed Gases