Welnor Industrial Gas Corporation supplies acetylene and other compressed gases

Question

Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: . Sales are budgeted at $340,000 for November, $360,000 for December, and $350,000 for January Collections are expected to be 75% in the month of sale, 23% in the month following the sale, and 2% uncollectible ·The cost of goods sold is 80% of sales ·The company desires ending merchandise inventory to equal 75% 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 $20,000 . Monthly depreciation is $15,000 .Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Merchandise Inventory Property, plant and equipment (net of $650,000 accumulated depreciation $ 21,000 81,000 204,000 1,170,000 Total assets $1,476,000 Liabilities and Stockholders' Equity Accounts payable Common stock $ 198,000 730,000 548,000 Retained earnings Total liabilities and stockholders' equity $ 1,476,000

Explanation / Answer

Welnor Industrial Gas Corporation supplies acetylene and other compressed gases

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