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?. ?“?? G www.googlex (3 Files C? x), D Final Exam?eBrarin Corp × e Brarin Corp × ???| ezto.mheducation.com/hm.tpx 4 Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: . Sales are budgeted at $370,000 for November, $390,000 for December, and $380,000 for January. Collections are expected to be 80% in the month of sale, 16% in the month following the sale, and 4% uncollectible The cost of goods sold is 74% of sales The company desires ending merchandise inventory to equal 80% 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 $21,500 Monthly depreciation is $16,500 .Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Merchandise Inventory Property, plant and equipment (net of $663,000 accumulated depreciation) 70,000 S 22,500 82,500 219,040 Total assets 1,494,040 Liabilities and Stockholders' Equity Accounts payable Common stock S 199,500 890,000 404,540 Retained earnings Total liabilities and stockholders' equity 1,494,040 Required: a. Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in

Explanation / Answer

Solution a:

Schedule of Expected Cash Collection on sales - Weinor industrial gas corporation Particulars November December Beginning accounts receivables $82,500.00 Collection of November sales $296,000.00 $59,200.00 Collection of December sales $312,000.00 Total Expected Cash collections $378,500.00 $371,200.00

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