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The Gomez Company, a merchandising firm, has budgeted itsactivity for December according to the following information:

•Sales at $500,000, all for cash.
• Merchandise Inventory onNovember 30 was $250,000.
• The cash balance at December 1 was$20,000.
• Selling and administrative expenses are budgeted at$50,000 for December and are paid for in cash.
• Budgeteddepreciation for December is $30,000.
• The planned merchandiseinventory on December 31 is $260,000.
• The cost of goods soldrepresents 75% of the selling price.
• All purchases are paid forin cash. Required: (SHOW ALL WORK) a. What is the budgeted cashreceipts for December? b. What is the budgeted cash disbursementsfor December? c. What is the budgeted net income for December?

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Jean Keeling
Jean KeelingLv2
28 Sep 2019

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The Adams Company, a merchandising firm, has budgeted its activityfor November according to the following information:

• Sales at $450,000, all for cash
• Merchandise inventory on October 31 was $200,000.
• The cash balance November 1 was $18,000.
• Selling and administrative expenses are budgeted at $60,000 forNovember and are paid for in cash.
• Budgeted depreciation for November is $25,000.
• The planned merchandise inventory on November 30 is$230,000.
• The cost of goods sold is 70% of the selling price.
• All purchases are paid for in cash.

The budgeted cash receipts for November are:

A. $315,000
B. $450,000
C. $135,000
D. $475,000


Andrews Company, a merchandising firm that sells one product, estimates it will sell 11,000 units of its product at $59 per unit in December. In November, the company prepared other information to prepare a budget for December, as shown​ here:

Merchandise inventory, December 12,000 units
Desired merchandise inventory for December 31 2,800 units
Cost per unit of merchandise purchases $34
Selling and administrative expenses $210,000
Cash balance, December 1 $33,000
November sales $610,000

The company estimates that 80 % of each​ month's sales are collected in the month of sale and that the remaining
20 % is collected in the month after sale. The $ 210,000 of selling and administrative expenses includes $ 20,000of depreciation.The company pays for thirty percent of merchandise purchases during the month of purchase and pays the remainder during the month following purchase. Estimated merchandise purchases for November are $ 366,000.All other​ out-of-pocket expenses are paid for in cash.

Requirements

​(a) How many units of merchandise will Andrews budget to purchase in December​? What is the dollar amount of
Andrews' budgeted merchandise purchases for December​?
​(b) Prepare a budgeted income statement for the month ended December for Andrews Company.
​(c) Prepare a statement of estimated cash flows for the month ended December for Andrews Company.

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 Stockholders’ Equity
Accountspayable $ 200,000
Common stock 940,000
Retainedearnings 320,960
Total liabilitiesand stockholders’ 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 Stockholders’ Equity
Total liabilities and stockholders’ equity

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