ezto.mheducation.com Pr 1. 10.0 points value Weldon Industrial Gas Corporation s

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ezto.mheducation.com Pr 1. 10.0 points value Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow Sales are budgeted at $310,000 for November, $330,000 for December, and $320,000 for January. . Colections are expected to be 80% in the month of sale, 18% in the month following the sale, and 2% The cost of goods sold is 70% ofsales. following month. Payment for merchandise is made in the month following the purchase. Monthly depreciation is $16,700. . The company desires an ending merchandise inventory equal to 75% of the cost of goods sold in the · Other monthly expenses to be paid in cash are $21,700. Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) $ 22,700 82,700 162,750 1,170,000 Property, plant and equipment (net of $685,000 accumulated depreclation) Total assets $ 1,438,150 Liabilities and Stockholders' Equity Accounts payable Common stock Retained eamings S 199,700 910,000 328,450 Total liabilities and stockholders' equity $ 1,438,150 a. Prepare a Schodule of Expected Cash Collections for Novwember and December esc

Explanation / Answer

a. Schedule of Expected Cash Collections from Sales :

b. Merchandise Purchases Budget :

Weldon Industrial Gas Corporation

Cash Budget

For the months ended November and December 20

Weldon Industrial Gas Corporation

Income Statement

For the year ended Dec 31

Weldon Industrial Gas Corporation

Balance Sheet

December 31

November December Total Collection of Sales of $ $ $ October 82,700 0 82,700 November 248,000 55,800 303,800 December 0 264,000 264,000 Totals 330,700 319,800 650,500

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