Summary: YARA Global Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data...
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Accounting
Summary: YARA Global Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: - Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 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 ending merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. - Other monthly expenses to be paid in cash are $21,000. Monthly depreciation is $16,000. Ignore taxes. Cash 22,000 / Account Receivables 82,000 / Merchandise inventory 166.400 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
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