Management accounting, accounting, Basic Statistics

19. Welnor 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.

statement of financial October 31
assets
cash $2
accounts receivable (net of allowance for uncollectible accounts) $8
merchandise inventory $16
property, plant & equip. (net of $165,000 accumulated depreciation) $1,17
total assets $1,44

liabilities and stockholders equity:
accounts payable $19
common stock $84
retained earnings $40
Total liabilities and stockholders equity $1,44

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.
Posted Date: 2/13/2012 3:25:48 PM | Location : United States







Related Discussions:- Management accounting, accounting, Assignment Help, Ask Question on Management accounting, accounting, Get Answer, Expert's Help, Management accounting, accounting Discussions

Write discussion on Management accounting, accounting
Your posts are moderated
Related Questions
what the advantages of quota sampling

Explain definition of bad debt reserve and provision in terms of accounts receivable likely to be uncollected. Bad debt reserve provision Bad debt reserve provision is a amount


Explain why large lorries carrying heavy loads may not succed to go through a curve safely

#questKody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates

Define Allocate To split a lump-sum appropriation into parts that are specific for expenses by particular government models and/or for particular requirements, actions, or things.

Measures of Dispersion (Variation) A measure of dispersion is to measure the spread among values of observations in a data set. There are three commonly used measures of disper

is direct costing variable, relevant or prime costing

How to calculate closing stock in Tally while we are posting with inventory.

Suppose I ask you to pick any four cards at random from a deck of 52, without replacement, and bet you one dollar that at least one of the four is a face card (i.e., Jack, Queen, o