Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • The company desires an ending merchandise inventory equal to 80% 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 $20,100. • Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 193,200 Accounts receivable Merchandise inventory Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable 2$ 194,900 500,000 596,100 Common stock Retained earnings Total liabilities and stockholders' equity $1,291,000 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 Rudgeted Income Statements for Novenmber and December
Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • The company desires an ending merchandise inventory equal to 80% 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 $20,100. • Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 193,200 Accounts receivable Merchandise inventory Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable 2$ 194,900 500,000 596,100 Common stock Retained earnings Total liabilities and stockholders' equity $1,291,000 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 Rudgeted Income Statements for Novenmber and December
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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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 $350,000 for November, $370,000 for December, and $360,000 for January.
• Collections are expected to be 80% in the month of sale and 20% in the month following the sale.
• The cost of goods sold is 69% of sales.
• The company desires an ending merchandise inventory equal to 80% 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 $20,100.
Monthly depreciation is $19,900.
Ignore taxes.
Balance Sheet
October 31
Assets
Cash
$
20,900
81,900
Accounts receivable
Merchandise inventory
193,200
Property, plant and equipment (net of $585,000 accumulated depreciation)
995,000
Total assets
$1,291,000
Liabilities and Stockholders' Equity
Accounts payable
$ 194,900
500,000
596,100
Common stock
Retained earnings
Total liabilities and stockholders' equity
$1,291,000
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
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 a Schedule of Expected Cash Collections for November and December.
November
December
Sales
Schedule of Expected Cash Collections
Accounts receivable
November sales
December sales
Total cash collections
0 $
<Required A
Required B >
%24
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