Weldon Industrial Gas Corporation supplies acetylene and other compressed gases

Question

Weldon 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, 22% in the month following the sale, and 3% uncollectible.

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.

Required:

Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Do not round intermediate calculations.)

Prepare Cash Budgets for November and December. (Input all amounts as positive values.)

WELDON INDUSTRIAL GAS CORPORATIONCash BudgetNovemberDecemberCash disbursements for merchandiseOther monthly cash expensesTotal cash disbursements$0$0Cash balance, beginningAdd cash receiptsTotal cash available00Less cash disbursementExcess (deficiency) of cash available over disbursements00FinancingCash balance, ending$0$0

      

Prepare Budgeted Income Statements for November and December.

      

Prepare a Budgeted Balance Sheet for the end of December.

      

Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

Explanation / Answer

Answer:b

Answer:c

Answer:d

Answer:e

WELDON INDUSTRIAL GAS CORPORATION Merchandise Purchase Budget Particulars November December Budgeted COGS 231200 244800 AddL Desired ending merchandising inventory 195840 190400 Total needs 427040 435200 Less: Beginning merchandise inventory 184960 195840 Required Purchase 242080 239360

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