1. (30 points) Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store’s operations follow:
A?· Sales are budgeted at $_____ for November, $______ for December, and $______ for January.
A?·Collections are expected to be __% in the month of sale, __% in the month following the sale, and __% uncollectible.
A?· The cost of goods sold is 65% of sales.
A?· The company desires ending merchandise inventory to equal __% of the following month’s cost of goods sold. Payment for merchandise is made in the month following the purchase.
A?· Other monthly expenses to be paid in cash are $_____.
A?· Monthly depreciation is $____.
A?· Ignore taxes.
STUDY AID NOTE ‘ The Statement of Financial Position at October 31 is given
Required:
Headings are NOT required for the following statements
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.
FILL IN BLANK SPACES WITH YOUR OWN NUMBERS TO SOLVE THE PROBLEM