Welnor industrial gas corporation supplies acetylene and

Assignment Help Accounting Basics

Reference no: EM13580089

Welnor 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, $350,000 for December, and $340,000 for January.
•	Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.
•	The cost of goods sold is 79% of sales.
•	The company desires ending merchandise inventory to equal 70% 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 $20,100.
•	Monthly depreciation is $15,100.
•	Ignore taxes.

Statement of Financial Position October 31
Assets
Cash	$	21,100
Accounts receivable (net of allowance for uncollectible accounts)		81,100
Merchandise Inventory		182,490
Property, plant and equipment (net of $651,000 accumulated depreciation)		1,170,000

Total assets	$	1,454,690

Liabilities and Stockholders' Equity
Accounts payable	$	198,100
Common stock		740,000
Retained earnings		516,590

Total liabilities and stockholders' equity	$	1,454,690

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: EM13580089

Questions Cloud

Determine the least squares equation according to this : q1. listed below is the net sales in million for home depot inc. and its subsidiaries from 1993 to 2004.yearnet

In a recent study 90 percent of the homes in the united : in a recent study 90 percent of the homes in the united states were found to have tvs. in a sample of nine homes what

The gross earnings of the factory workers for vargas : 1 during january its first month of operations knox company accumulated the following manufacturing costs raw materials

For its purchasing cost pool hcc inc expected overhead cost : for its purchasing cost pool hcc inc. expected overhead cost of 800000 and 20000 inspections. the actual overhead cost

Welnor industrial gas corporation supplies acetylene and : welnor industrial gas corporation supplies acetylene and other compressed gases to industry. data regarding the stores

Boise bike corp manufactures mountain bikes and distributes : boise bike corp. manufactures mountain bikes and distributes them through retail outlets in montana idaho oregon and

75 of the trucks had 16 wheels what is the expected value : acme truck manufactures 8 and 16 wheel vehicles. in 2010 25 of trucks manufractured had 8 wheels and 75 of the trucks

Assume you are the division controller for auntie ms cookie : assume you are the division controller for auntie ms cookie company. antie m has introduced a new chocolate chip cookie

Marple associates is a consulting firm that specializes in : marple associates is a consulting firm that specializes in information systems for construction and landscaping

User Account

All Pages