Managerial accounting, Managerial Accounting

Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store''s operations follow:
500
Garrison, Managerial Accounting, 12th Edition
• •
• •
• • •
Sales are budgeted at $360,000 for November, $380,000 for December, and $350,000 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 purchases 60% of its merchandise in the month prior to the month
of sale and 40% in the month of sale. Payment for merchandise month following the purchase. Other monthly expenses to be paid in cash are $21,900.
Monthly depreciation is $20,000. Ignore taxes.
Statement of Financial Position October 31
Assets Cash .............................................................................................
Accounts receivable (net of allowance for uncollectible accounts)..........................
Inventory ..................................................................................... Property, plant and equipment
(net of $500,000 accumulated depreciation) ........................... Total assets ..................................................................................
Liabilities and Stockholders’ Equity Accounts payable ........................................................................ Common stock............................................................................. Retained earnings ........................................................................ Total liabilities and stockholders’ equity ....................................
is made in the
$ 16,000
74,000 140,400
1,066,000 $1,296,400
$ 240,000 640,000 416,400 $1,296,400
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. d. Prepare Budgeted Income Statements for November and December. e. Prepare a Budgeted Balance Sheet for the end of December.
Posted Date: 7/2/2012 2:56:27 PM | Location : United States







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

Write discussion on Managerial accounting
Your posts are moderated
Related Questions
Characteristics of irrelevant costs

The significant objectives of short-term cash forecast are as given: find out operating cash requirement anticipating short term financing Organization investment of

Disadvantages of zero base budgeting 1) It is not suitable for all the activities in an organization 2) It has limited application in a profit making organization. In this c

Excess machine hours 20,000. Received offers from two companies to buy 210,000 units of F at 0.60 and 300,000 units of D at 0.70. Estimated costs for the two products are;


Identify the management assertions related to each of the fictitious supplier credits and unrecorded amounts in accounts payable using the facts presented

Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother's hardware shop, is in charge of purchasing. She estimates t

Compute the equ units of production?

Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making

Explain Programmer budgeting According to burkhead According to burkhead a program budget serves a different purpose than performance budget. A performance budget is useful fo