Weldon Industrial Gas Corporation supplies acetylene and other compressed gases
ID: 2571332 • Letter: W
Question
Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:
• Sales are budgeted at $360,000 for November, $380,000 for December, and $350,000 for January.
• Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.
• The cost of goods sold is 65% of sales.
• The company desires an ending merchandise inventory equal to 60% of the cost of goods sold in the following month.
• Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $61,900.
• Monthly depreciation is $20,000.
• Equipment purchased in December of $55,000.
• Dividend paid in December of $75,000.
• Financing: If cash is over $50,000 at the end of any month, pay back loan in increments of $5,000. If cash is under 15,000 at the end of any month, borrow in $5,000 increments.
• Ignore taxes.
d. Prepare Budgeted Income Statements for November and December.
e. Prepare a Budgeted Balance Sheet for the end of December.
d. November December
Sales $ $
Cost of goods sold .
Gross margin .
Bad debt expense
Other monthly expenses
Depreciation .
Total expenses .
Net operating income $ $ .
e. Balance Sheet
December 31
Assets:
Cash $
Accounts receivable (net of allowance for uncollectible accounts)
Merchandise inventory
Property, plant and equipment (net of $540,000 accumulated depreciation) .
Total assets $ .
Liabilities and Stockholders’ Equity:
Accounts payable $
Notes payable
Common stock
Retained earnings .
Total liabilities and stockholders’ equity $
Explanation / Answer
Please add the data for the first 3 parts for the balace sheet
d Income statement November December Sales 360000 380000 Cost of goods sold 234000 247000 Gross margin 126000 133000 Bad debt expense 18000 19000 (5%of sales) Other monthly expense 61900 61900 Depreciation expense 20000 20000 Total expense 99900 100900 Net operating income 26100 32100Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.