Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets $ 66,600 Cash Accounts receivable 138, 000 Inventory Buildings and equipment, net of depreciation 64,800 260, 000 $ 529,400 Total assets Liabilities and stockholders' Equity Accounts payable $ 159,400 216,000 Common stock Retained earnings Total liabilities and stockholders' equity 154,000 $ 529,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $480,000 for October and $490,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $89,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,600 for the month. Required: 1. Using the information provided, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. The budgeted net operating income for October. e. A budgeted balance sheet at October 31. 2. Assume the following changes to the underlying budgeting assumptions: (1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. Net operating income for the month of October. e. A budgeted balance sheet at October 31. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 10 Reg 10 Req 1E Reg 2A Req 2B Req 20 Req 2D Req 2E Prepare the budgeted cash collections for October. Budgeted cash collections for October Req 1A Req 18 Req 10 Req 1D Req 1E Req 2A Req 28 Req 20 Req 2D Reg 2E Prepare the budgeted merchandise purchases for October. Budgeted merchandise purchases for October Reg 1A Req 18 Reg 10 Req 1D Req 1E Reg 2A Req 2B Req 20 Req 2D Req 2E Prepare the budgeted cash disbursements for merchandise purchases for October. Budgeted cash disbursements for merchandise purchases for October Req 1A Req 18 Req 10 Req 1D Req 1E Req 2A Req 2B Req 20 Req 2D Req 2E Prepare the budgeted net operating Income for October. ..... Budgeted net operating income for October

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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Reg 14
Reg 18
Reg IC
Reg ID
Reg 1E
Reg 24
Reg 28
Reg 20
Reg 20
Reg 2E
Prepare a budgeted balance sheet at October 31.
Wheeling Company
Balance Sheet
October 31
Assets
Total ata
Liabilities and Stockholders Equity
Total abties and stockholders' equit
Reg 1A
Reg 18
Req 10
Reg 1D
Reg 1E
Req 2A
Reg 28
Req 20
Req 20
Reg 2E
Prepare the budgeted cash collections for October. Assume that 50% of a month's credit sales are collected in the month the
sales are made and the remalning 50% Is collected in the following month, (2) the ending merchandise Inventory Is ahways
10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80%
are pald for In the following month.
Show less a
Judgeted cash collections for October
Req 1A
Reg 18
Reg 10
Reg 1D
Reg 1E
Reg 2A
Req 28
Req 20
Req 20
Reg 2E
Prepare the budgeted merchandise purchases for October. Assume that 50% of a month's credit sales are collected in the
month the sales are made and the remaining 50% Is collected in the following month, (2) the ending merchandise inventory
is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase
and 80% are pald for In the following month.
Show less A
Budgeted merchandise purchases for October
Reg 1A
Reg 18
Reg 10
Reg 10
Req 1E
Reg 2A
Reg 28
Reg 20
Req 20
Req 2E
Prepare the budgeted cash disbursements for merchandise purchases for October. Assume that 50% of a month's credit sales
are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending
merchandise Inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for In
the month of purchase and 80% are paid for in the following month.
Show less A
Budgeted cash disbursements for merchandise purchases for October
Reg 1A
Reg 18
Reg 10
Req 1D
Req 1E
Req 2A
Reg 28
Req 20
Req 20
Reg 2E
Prepare the net operating income for the month of October. Assume that 50% of a month's credit sales are collected in the
month the sales are made and the remalning 50% is collected in the following month, (2) the ending merchandise Inventory
is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase
and 80% are pald for In the following month.
Show lesSA
Budgeted net operating income for October
Reg 1A
Reg 16
Reg iC
Reg 10
Reg E
Reg 2A
Reg 28
Reg 0
Reg 20
Reg 2E
Prepare a budgeted balance sheet at October 31. Assume that Sa of a month's credit sales are collected in the month the
sales are made and the remaining s0% is collected in the fellowing month, (2) the ending merchandise inventory is always
10% of the following month's cost of goods sold, and (3) 20% of al purchases are paid for in the month of purchase and so
are paid for in the fotowing month
Shew less a
Wheeling Compeny
Balance Sheet
October 31
Assets
Total assets
Liabilties and StockholdersEquity
Total l e and stockholders equty
Transcribed Image Text:Reg 14 Reg 18 Reg IC Reg ID Reg 1E Reg 24 Reg 28 Reg 20 Reg 20 Reg 2E Prepare a budgeted balance sheet at October 31. Wheeling Company Balance Sheet October 31 Assets Total ata Liabilities and Stockholders Equity Total abties and stockholders' equit Reg 1A Reg 18 Req 10 Reg 1D Reg 1E Req 2A Reg 28 Req 20 Req 20 Reg 2E Prepare the budgeted cash collections for October. Assume that 50% of a month's credit sales are collected in the month the sales are made and the remalning 50% Is collected in the following month, (2) the ending merchandise Inventory Is ahways 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are pald for In the following month. Show less a Judgeted cash collections for October Req 1A Reg 18 Reg 10 Reg 1D Reg 1E Reg 2A Req 28 Req 20 Req 20 Reg 2E Prepare the budgeted merchandise purchases for October. Assume that 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% Is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are pald for In the following month. Show less A Budgeted merchandise purchases for October Reg 1A Reg 18 Reg 10 Reg 10 Req 1E Reg 2A Reg 28 Reg 20 Req 20 Req 2E Prepare the budgeted cash disbursements for merchandise purchases for October. Assume that 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending merchandise Inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for In the month of purchase and 80% are paid for in the following month. Show less A Budgeted cash disbursements for merchandise purchases for October Reg 1A Reg 18 Reg 10 Req 1D Req 1E Req 2A Reg 28 Req 20 Req 20 Reg 2E Prepare the net operating income for the month of October. Assume that 50% of a month's credit sales are collected in the month the sales are made and the remalning 50% is collected in the following month, (2) the ending merchandise Inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are pald for In the following month. Show lesSA Budgeted net operating income for October Reg 1A Reg 16 Reg iC Reg 10 Reg E Reg 2A Reg 28 Reg 0 Reg 20 Reg 2E Prepare a budgeted balance sheet at October 31. Assume that Sa of a month's credit sales are collected in the month the sales are made and the remaining s0% is collected in the fellowing month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of al purchases are paid for in the month of purchase and so are paid for in the fotowing month Shew less a Wheeling Compeny Balance Sheet October 31 Assets Total assets Liabilties and StockholdersEquity Total l e and stockholders equty
Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below:
Wheeling Company
Balance Sheet
September 30
Assets
66,600
138,000
64,800
260,000
Cash
24
Accounts receivable
Inventory
Buildings and equipment, net of depreciation
Total assets
$ 529,400
Liabilities and Stockholders' Equity
Accounts payable
Common stock
$ 159,400
216,000
Retained earnings
Total liabilities and stockholders' equity
154,000
$ 529,400
The company is in the process of preparing a budget for October and has assembled the following data:
1. Sales are budgeted at $480,000 for October and $490,000 for November. Of these sales, 35% will be for cash; the remainder will
be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is
collected in the following month. All of the September 30 accounts receivable will be collected in October.
2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following
month's cost of goods sold.
3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid
for in the following month. All of the September 30 accounts payable to suppliers will be paid during October.
4. Selling and administrative expenses for October are budgeted at $89,000, exclusive of depreciation. These expenses will be paid
in cash. Depreciation is budgeted at $2,600 for the month.
Required:
1. Using the information provided, calculate or prepare the following:
a. The budgeted cash collections for October.
b. The budgeted merchandise purchases for October.
c. The budgeted cash disbursements for merchandise purchases for October.
d. The budgeted net operating income for October.
e. A budgeted balance sheet at October 31.
2. Assume the following changes to the underlying budgeting assumptions:
(1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following
month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases
are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare
the following:
a. The budgeted cash collections for October.
b. The budgeted merchandise purchases for October.
c. The budgeted cash disbursements for merchandise purchases for October.
d. Net operating income for the month of October.
e. A budgeted balance sheet at October 31.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Req 10
Req 1D
Req 1E
Req 2A
Req 2B
Req 20
Req 2D
Req 2E
Prepare the budgeted cash collections for October.
Budgeted cash collections for October
Req 1A
Req 18
Req 10
Req 1D
Req 1E
Req 2A
Req 2B
Req 20
Req 2D
Reg 2E
Prepare the budgeted merchandise purchases for October.
Budgeted merchandise purchases for October
Req 1A
Req 1B
Req 10
Req 1D
Req 1E
Req 2A
Req 2B
Req 20
Req 2D
Reg 2E
Prepare the budgeted cash disbursements for merchandise purchases for October.
Budgeted cash disbursements for merchandise purchases for October
Req 1A
Reg 1B
Req 10
Req 10
Req 1E
Req 2A
Req 2B
Reg 20
Req 2D
Reg 2E
Prepare the budgeted net operating Income for October.
Budgeted net operating income for October
Transcribed Image Text:Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets 66,600 138,000 64,800 260,000 Cash 24 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets $ 529,400 Liabilities and Stockholders' Equity Accounts payable Common stock $ 159,400 216,000 Retained earnings Total liabilities and stockholders' equity 154,000 $ 529,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $480,000 for October and $490,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $89,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,600 for the month. Required: 1. Using the information provided, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. The budgeted net operating income for October. e. A budgeted balance sheet at October 31. 2. Assume the following changes to the underlying budgeting assumptions: (1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. Net operating income for the month of October. e. A budgeted balance sheet at October 31. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Req 1D Req 1E Req 2A Req 2B Req 20 Req 2D Req 2E Prepare the budgeted cash collections for October. Budgeted cash collections for October Req 1A Req 18 Req 10 Req 1D Req 1E Req 2A Req 2B Req 20 Req 2D Reg 2E Prepare the budgeted merchandise purchases for October. Budgeted merchandise purchases for October Req 1A Req 1B Req 10 Req 1D Req 1E Req 2A Req 2B Req 20 Req 2D Reg 2E Prepare the budgeted cash disbursements for merchandise purchases for October. Budgeted cash disbursements for merchandise purchases for October Req 1A Reg 1B Req 10 Req 10 Req 1E Req 2A Req 2B Reg 20 Req 2D Reg 2E Prepare the budgeted net operating Income for October. Budgeted net operating income for October
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