Need help please!
Weldon Industrial Gas Corporation supplies acetylene and othercompressed gases to industry. Data regarding the store's operationsfollow:
⢠Sales are budgeted at $340,000 for November, $360,000 forDecember, and $350,000 for January.
⢠Collections are expected to be 75% in the month of sale, 22% inthe month following the sale, and 3% uncollectible.
⢠The cost of goods sold is 68% ofsales. ⢠The company desires an ending merchandise inventory equal to 80%of the cost of goods sold in the following month. Payment formerchandise is made in the month following the purchase.
⢠Other monthly expenses to bepaid in cash are $22,000. ⢠Monthly depreciation is$17,000. ⢠Ignore taxes.
Balance Sheet
October 31 Assets Cash $ 23,000 Accounts receivable(net of allowance for uncollectible accounts) 83,000 MerchandiseInventory 184,960 Property, plant andequipment (net of $668,000 accumulated depreciation) 1,170,000 Total assets $ 1,460,960 Liabilities and Stockholdersâ Equity Accountspayable $ 200,000 Common stock 940,000 Retainedearnings 320,960 Total liabilitiesand stockholdersâ equity $ 1,460,960
Required:
a. Prepare a Schedule of Expected Cash Collections for November andDecember.
WELDON INDUSTRIAL GAS CORPORATION Schedule of Expected Cash Collections November December Sales Scheduleof Expected Cash Collections Accountsreceivable Novembersales Decembersales Totalcash collections
b. Prepare a Merchandise Purchases Budget for November andDecember. (Input all amounts as positive values. Do notround intermediate calculations.)
WELDON INDUSTRIAL GAS CORPORATION Merchandise Purchases Budget November December Budgetedcost of goods sold Totalneeds Requiredpurchase
c. Prepare Cash Budgets for November and December. (Inputall amounts as positive values.)
WELDON INDUSTRIAL GAS CORPORATION Cash Budget November December Cashdisbursements for merchandise Othermonthly cash expenses Totalcash disbursements Cashbalance, beginning Add cashreceipts Totalcash available Less cashdisbursement Excess(deficiency) of cash available over disbursements Financing Cashbalance, ending
d. Prepare Budgeted Income Statements for November andDecember.
WELDON INDUSTRIAL GAS CORPORATION Budgeted Income Statement November December
e. Prepare a Budgeted Balance Sheet for the end of December
WELDON INDUSTRIAL GAS CORPORATION Budgeted Balance Sheet December 31 Assets Total assets Liabilities and Stockholdersâ Equity Total liabilities and stockholdersâ equity
Need help please!
Weldon Industrial Gas Corporation supplies acetylene and othercompressed gases to industry. Data regarding the store's operationsfollow: |
| ⢠| Sales are budgeted at $340,000 for November, $360,000 forDecember, and $350,000 for January. |
| ⢠| Collections are expected to be 75% in the month of sale, 22% inthe month following the sale, and 3% uncollectible. |
| ⢠| The cost of goods sold is 68% ofsales. |
| ⢠| The company desires an ending merchandise inventory equal to 80%of the cost of goods sold in the following month. Payment formerchandise is made in the month following the purchase. |
| ⢠| Other monthly expenses to bepaid in cash are $22,000. |
| ⢠| Monthly depreciation is$17,000. |
| ⢠| Ignore taxes. |
| Balance Sheet October 31 | ||
| Assets | ||
| Cash | $ | 23,000 |
| Accounts receivable(net of allowance for uncollectible accounts) | 83,000 | |
| MerchandiseInventory | 184,960 | |
| Property, plant andequipment (net of $668,000 accumulated depreciation) | 1,170,000 | |
| Total assets | $ | 1,460,960 |
| Liabilities and Stockholdersâ Equity | ||
| Accountspayable | $ | 200,000 |
| Common stock | 940,000 | |
| Retainedearnings | 320,960 | |
| Total liabilitiesand stockholdersâ equity | $ | 1,460,960 |
Required: |
| a. | Prepare a Schedule of Expected Cash Collections for November andDecember. |
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Related questions
Carner Lumber sells lumber and general building supplies tobuilding contractors in a medium-sized town in Montana. Dataregarding the store's operations follow: |
| ⢠| Sales are budgeted at $370,000for November, $360,000 for December, and $340,000 for January. |
| ⢠| Collections are expected to be84% in the month of sale, and 16% in the month following thesale. |
| ⢠| The cost of goods sold is 77% ofsales. |
| ⢠| The company purchases 26% of itsmerchandise in the month prior to the month of sale and 74% in themonth of sale. Payment for merchandise is made in the monthfollowing the purchase. |
| ⢠| Other monthly expenses to bepaid in cash are $23,400. |
| ⢠| Monthly depreciation is$15,500. |
| ⢠| Ignore taxes. |
| Statement of Financial Position October 31 | |
| Assets | |
| Cash | $19,700 |
| Accounts receivable (net ofallowance for uncollectible accounts) | 83,800 |
| Inventory | 74,074 |
| Property, plant and equipment(net of $492,000 accumulated depreciation) | 984,000 |
| Totalassets | $1,161,574 |
| Liabilities and StockholdersâEquity | |
| Accountspayable | $284,900 |
| Commonstock | 785,000 |
| Retainedearnings | 91,674 |
| Total liabilities andstockholdersâ equity | $1,161,574 |
