Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations
follow:
Sales are budgeted at $ for November, $ for December, and $ for January.
Collections are expected to be in the month of sale and in the month following the sale.
The cost of goods sold is of sales.
The company desires an ending merchandise inventory equal to 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 $
Monthly depreciation is $
Ignore taxes.
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.
