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Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January. • Collections are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 85% 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 $20,000. • Monthly depreciation is $19,800. Ignore taxes. Balance Sheet October 31 Assets Cash 20,800 Accounts receivable 81,800 Merchandise inventory 214,200 994,000 Property, plant and equipment (net of $584,000 accumulated depreciation) Total assets $1,310,800 Liabilities and Stockholders' Equity Accounts payable $ 194,800 Common stock 490,000 626,000 Retained earnings Total liabilities and stockholders' equity $1,310,800 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 to industry. Data regarding the store's operations follow: • Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January. • Collections are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 85% 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 $20,000. • Monthly depreciation is $19,800. Ignore taxes. Balance Sheet October 31 Assets Cash 20,800 Accounts receivable 81,800 Merchandise inventory 214,200 994,000 Property, plant and equipment (net of $584,000 accumulated depreciation) Total assets $1,310,800 Liabilities and Stockholders' Equity Accounts payable $ 194,800 Common stock 490,000 626,000 Retained earnings Total liabilities and stockholders' equity $1,310,800 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please use the formatting provided and please help with c, d, and e

Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January. • Collections are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 85% 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 $20,000. Monthly depreciation is $19,800. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,800 81,800 214, 200 Accounts receivable Merchandise inventory Property, plant and equipment (net of $584,000 accumulated depreciation) 994,000 Total assets $1,310,800 Liabilities and Stockholders' Equity Accounts payable $ 194,800 490,000 Common stock Retained earnings 626,000 Total liabilities and stockholders' equity $1,310,800 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. Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January. • Collections are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 85% 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 $20,000. Monthly depreciation is $19,800. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,800 81,800 214, 200 Accounts receivable Merchandise inventory Property, plant and equipment (net of $584,000 accumulated depreciation) 994,000 Total assets $1,310,800 Liabilities and Stockholders' Equity Accounts payable $ 194,800 490,000 Common stock Retained earnings 626,000 Total liabilities and stockholders' equity $1,310,800 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. Complete this question by entering your answers in the tabs below.
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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E :Prepare Budgeted Income Statements for November and December. November December Sales Cost of goods sold Other monthly expenses Depreciation < Required C Required E >
Transcribed Image Text: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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E :Prepare Budgeted Income Statements for November and December. November December Sales Cost of goods sold Other monthly expenses Depreciation < Required C Required E >
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