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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 $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • 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. • Other monthly expenses to be paid in cash are $20,100. • Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 193,200 Accounts receivable Merchandise inventory Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable 2$ 194,900 500,000 596,100 Common stock Retained earnings Total liabilities and stockholders' equity $1,291,000 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 Rudgeted Income Statements for Novenmber and December

Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • 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. • Other monthly expenses to be paid in cash are $20,100. • Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 193,200 Accounts receivable Merchandise inventory Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable 2$ 194,900 500,000 596,100 Common stock Retained earnings Total liabilities and stockholders' equity $1,291,000 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 Rudgeted Income Statements for Novenmber and December

Excel Applications for Accounting Principles
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 $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • 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. • Other monthly expenses to be paid in cash are $20,100. Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 Accounts receivable Merchandise inventory 193,200 Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable $ 194,900 500,000 596,100 Common stock Retained earnings Total liabilities and stockholders' equity $1,291,000 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
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 $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • 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. • Other monthly expenses to be paid in cash are $20,100. Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 Accounts receivable Merchandise inventory 193,200 Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable $ 194,900 500,000 596,100 Common stock Retained earnings Total liabilities and stockholders' equity $1,291,000 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
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 Schedule of Expected Cash Collections for November and December. November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections 0 $ <Required A Required B > %24
Transcribed Image Text: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 Schedule of Expected Cash Collections for November and December. November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections 0 $ <Required A Required B > %24
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