The company desires ending merchandise inventory to equal

Assignment Help Accounting Basics

Reference no: EM13571000

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

· Sales are budgeted at $352,000 for November, $330,000 for December, and $308,000 for January.

·Collections are expected to be 20% in the month of sale, 70% in the month following the sale, and 10% uncollectible.

· The cost of goods sold is 65% of sales.

· The company desires ending merchandise inventory to equal 40% 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 $90,000.

· Monthly depreciation is $30,000.

· Ignore taxes.

Required:

Headings are NOT required for the following statements

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.

Reference no: EM13571000

Questions Cloud

Dicenta corporation reported net income of 277000 in 2012 : dicenta corporation reported net income of 277000 in 2012 and had 50000 shares of common stock outstanding throughout

Type your question heredetermining the present value of a : type your question heredetermining the present value of a lump-sum future cash receipt marsha bittner expects to

The cash dividend has recently been increased to265 per : tulia dairy pays a 2.50 cash dividend and earns 5.00 pershare. the cash dividend has recently been increased to2.65

Blair purchased 290 shares of stock last year at a total : blair purchased 290 shares of stock last year at a total cost of 13880. he has received a total of 650 in dividends on

The company desires ending merchandise inventory to equal : 1.welnor industrial gas corporation supplies acetylene and other compressed gases to industry. data regarding the

The company is planning on increasing its annual dividend : combined communications is a new firm in a rapidly growing industry. the company is planning on increasing its annual

The preferred stock is noncumulative and is participating : 9preferred dividends martinez companys ledger shows the following balances on december 31 2012.5 preferred stock-10 par

Bedford mattress company issued preferred stock years ago : bedford mattress company issued preferred stock years ago that carries a fixed dividend of 8 per share and yields have

Tavorn corporation applies manufacturing overhead to : tavorn corporation applies manufacturing overhead to products on the basis of standard machine-hours. the companys

User Account

All Pages