Please use the formatting provided Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operationsfollow: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 SheetOctober 31AssetsCash$20,80081,800214, 200Accounts receivableMerchandise inventoryProperty, plant and equipment (net of $584,000 accumulated depreciation)994,000Total assets$1,310,800Liabilities and Stockholders' EquityAccounts payable$ 194,800490,000Common stockRetained earnings626,000Total liabilities and stockholders' equity$1,310,800Required: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. 490,000626,000Common stockRetained earningsTotal liabilities and stockholders' equity$1,310,800Required: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 ARequired BRequired CRequired DRequired EPrepare a Merchandise Purchases Budget for November and December.NovemberDecemberBudgeted cost of goods soldTotal needsRequired purchases< Required ARequired C >

The question is based on the concept of Budget costing.

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.

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.

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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