Question: plz follow the rule Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted

plz follow the rule
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, $300,000 for December, and for January. Collections are expected to be 85% in the month Of sale, 14% in the rnonth following the sale, and 1% uncollectible. The cost Of goods sold is 600/0 Of sales. The company purchases 80% Of its merchandise in the month prior to the month Of sale and 20% in the month Of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are S21 ,200. Monthly depreciation is S21 , 000. Ignore taxes. Statement of Financial Position As at October 31 Assets C ash Accounts receivable (net Of allowance for uncollectible accounts) Inventory Property , plant and equipment (net Of accumulated depreciation) Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Required: s 22,000 83,000 158,400 1 004 ooo s 196,000 620,000 451 400 $1267.400 Prepare a Schedule Of Expected Cash Collections for November and December. (6 marks) b. d. Prepare a Merchandise Purchases Budget for November and December. Prepare Cash Budgets for November and December. Prepare Budgeted Income Statements for November and December. (8 marks) (8 marks) ( 13 marks) Prepare a Budgeted Statement of Financial Position for the end of December. (15 marks)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
