Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
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 70% 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 $22,300. Monthly depreciation is $22,100. Ignore taxes. Balance Sheet October 31 Assets Cash $ 23,100 Accounts receivable 84,100 Merchandise inventory 169,050 Property, plant and equipment (net of $605,000 accumulated depreciation) 1,015,000 Total assets $ 1,291,250 Liabilities and Stockholders' Equity Accounts payable $ 197,100 Common stock 950,000 Retained earnings 144,150 Total liabilities and stockholders' equity $ 1,291,250
b. Prepare a Merchandise Purchases Budget for November and December.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
