Weller 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 $370,000 for January. Collections are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 85% 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 $20,000. • Monthly depreciation is $19,800. Ignore taxes.
Weller 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 $370,000 for January. Collections are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 85% 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 $20,000. • Monthly depreciation is $19,800. Ignore taxes.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
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![Weller 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 $370,000 for January.
• Collections are expected to be 75% in the month of sale and 25% in the month following the sale.
• The cost of goods sold is 70% of sales.
• The company desires an ending merchandise inventory equal to 85% 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 $20,000.
Monthly depreciation is $19,800.
Ignore taxes.
Balance Sheet
October 31
Assets
Cash
$
20,800
81,800
214, 200
Accounts receivable
Merchandise inventory
Property, plant and equipment (net of $584,000 accumulated depreciation)
994,000
Total assets
$1,310,800
Liabilities and Stockholders' Equity
Accounts payable
$ 194,800
490,000
Common stock
Retained earnings
626,000
Total liabilities and stockholders' equity
$1,310,800
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
C. Prepare Cash Budgets for November and December.
d. Prepare Budgeted Income Statements for November and December.
e. Prepare a Budgeted Balance Sheet for the end of December.
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4306ea2e-4a37-4023-ae2b-b4f15dc22ae7%2F6fe31ef3-0e2c-43cc-89bb-4f770d3328e7%2F9uxl1ml_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Weller 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 $370,000 for January.
• Collections are expected to be 75% in the month of sale and 25% in the month following the sale.
• The cost of goods sold is 70% of sales.
• The company desires an ending merchandise inventory equal to 85% 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 $20,000.
Monthly depreciation is $19,800.
Ignore taxes.
Balance Sheet
October 31
Assets
Cash
$
20,800
81,800
214, 200
Accounts receivable
Merchandise inventory
Property, plant and equipment (net of $584,000 accumulated depreciation)
994,000
Total assets
$1,310,800
Liabilities and Stockholders' Equity
Accounts payable
$ 194,800
490,000
Common stock
Retained earnings
626,000
Total liabilities and stockholders' equity
$1,310,800
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
C. Prepare Cash Budgets for November and December.
d. Prepare Budgeted Income Statements for November and December.
e. Prepare a Budgeted Balance Sheet for the end of December.
Complete this question by entering your answers in the tabs below.
![490,000
626,000
Common stock
Retained earnings
Total liabilities and stockholders' equity
$1,310,800
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
c. Prepare Cash Budgets for November and December.
d. Prepare Budgeted Income Statements for November and December.
e. Prepare a Budgeted Balance Sheet for the end of December.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required D
Required E
Prepare a Merchandise Purchases Budget for November and December.
November
December
Budgeted cost of goods sold
Total needs
Required purchases
< Required A
Required C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4306ea2e-4a37-4023-ae2b-b4f15dc22ae7%2F6fe31ef3-0e2c-43cc-89bb-4f770d3328e7%2Ffmktm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:490,000
626,000
Common stock
Retained earnings
Total liabilities and stockholders' equity
$1,310,800
Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
c. Prepare Cash Budgets for November and December.
d. Prepare Budgeted Income Statements for November and December.
e. Prepare a Budgeted Balance Sheet for the end of December.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required D
Required E
Prepare a Merchandise Purchases Budget for November and December.
November
December
Budgeted cost of goods sold
Total needs
Required purchases
< Required A
Required C >
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