Weldon Industrial Gas Corporation supplies acetylene and other compressed gasses
ID: 2450144 • Letter: W
Question
Weldon Industrial Gas Corporation supplies acetylene and other compressed gasses to industry. Data regarding the store's operations follow:
-The company sells each unit for $45.
-Budgeted Sales:
-Collections are expected to be 70% in the month of sale, 30% in the month following the sale
-The A/R balance at September 30th will be collected in full in October
-The cost of the merchandise is $32 per unit
-In addition to meeting the current month's sales demand, management wants to maintain an ending inventory balance of 10% of the next month's sales.
-The ending inventory balance at September 30th is 2,625 units.
-Payment or merchandise is as ollows: 1/2 pain in the month of purchase, 1/2 paid the month following the purchase
-The A/P balance at September 30th will be paid in full in October.
-Other monthly expenses to be paid in cash are $300,000
Balance Sheet
September 30
Required:
a. Prepare a sales budget for October, November, and December
b. Prepare a merchandise Purchases Budget for October, November, and December
c. Prepare a Schedule of Expected Cash Disbursements for October, November, and December
d. Prepare a Cash Budget for October, November, and December
Month October November December January Sales in Units 30,000 25,000 40,000 30,000Explanation / Answer
sales budget for October, November, and December
a merchandise Purchases Budget for October, November, and December
Schedule of Expected Cash Disbursements for October, November, and December
Cash Budget for October, November, and December
Particulars October November December Sales (units) 30000 25000 40000 Sales price per unit 45 45 45 Sales 1350000 1125000 1800000Related Questions
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