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(Solution Download) Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data re


 

 

 

 

 

 

 

Welnor Industrial Gas Corporation supplies acetylene and other

 

compressed gases to industry. Data regarding the store's operations

 

follow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A????1

 

Sales are budgeted at $350,000 for November, $370,000 for

 

December, and $360,000 for January.

 

A????1

 

Collections are expected to be 75% in the month of sale, 22% in

 

the month following the sale, and 3% uncollectible.

 

A????1The cost of goods sold is 74% of

 

sales.

A????1

 

The company desires ending merchandise inventory to equal 70% of

 

the following month's cost of goods sold. Payment for merchandise

 

is made in the month following the purchase.

 

A????1Other monthly expenses to be

 

paid in cash are $20,600.

A????1Monthly depreciation is

 

$15,600.

A????1Ignore taxes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Financial Position

 

October 31

 

Assets

  Cash$21,600
  Accounts receivable

 

(net of allowance for uncollectible accounts)

81,600
  Merchandise

 

Inventory

181,300
  Property, plant and

 

equipment (net of $656,000 accumulated depreciation)

1,170,000
  Total assets$1,454,500

 

Liabilities and StockholdersA????1 Equity

  Accounts

 

payable

$198,600
  Common stock790,000
  Retained

 

earnings

465,900
  Total liabilities

 

and stockholdersA????1 equity

$1,454,500

 

 

 

 

 

 

 

 

Required:

 

 

 

 

 

 

 

 

 

a.

 

Prepare a Schedule of Expected Cash Collections for November and

 

December. (Omit the "$" sign in your

 

response.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welnor Industrial Gas Corporation

 

Schedule of Expected Cash Collections

NovemberDecember
  Sales

 

$   

 

$   

  Schedule of Expected

 

Cash Collections

  Accounts

 

receivable

 

$   

  November sales

 

  

 

$   

  December sales

 

  

  Total cash

 

collections

 

$   

 

$   

 

 

 

 

 

 

 

 

b.

 

Prepare a Merchandise Purchases Budget for November and

 

December. (Input all amounts as positive values. Do not

 

round intermediate calculations. Omit the "$" sign in your

 

response.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welnor Industrial Gas Corporation

 

Merchandise Purchases Budget

NovemberDecember
  Budgeted cost of

 

goods sold

 

$   

 

$   

  (Click to

 

select)AddDeduct: (Click to select)Beginning merchandise

 

inventoryDesired ending merchandising inventory

 

  

 

  

  Total needs

 

  

 

  

  (Click to

 

select)DeductAdd: (Click to select)Desired ending merchandising

 

inventoryBeginning merchandise inventory

 

  

 

  

  Required

 

purchases

 

$   

 

$   

 

 

 

 

 

 

 

 

c.

 

Prepare Cash Budgets for November and December. (Leave

 

no cells blank - be certain to enter "0" wherever required. Input

 

all amounts as positive values. Omit the "$" sign in your

 

response.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welnor Industrial Gas Corporation

 

Cash Budget

NovemberDecember
  Cash disbursements

 

for merchandise

 

$   

 

$   

  Other monthly cash

 

expenses

 

  

 

  

  Total cash

 

disbursements

 

$   

 

$   

  Cash balance,

 

beginning

 

$   

 

$   

  Add cash

 

receipts

 

  

 

  

  Total cash

 

available

 

  

 

  

  Less cash

 

disbursement

 

  

 

  

  Excess (deficiency)

 

of cash available

 

  over disbursements

 

  

 

  

  Financing

 

  

 

  

  Cash balance,

 

ending

 

$   

 

$   

 

 

 

 

 

 

 

 

d.

 

Prepare Budgeted Income Statements for November and December.

 

(Input all amounts as positive values. Omit the "$" sign in

 

your response.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welnor Industrial Gas Corporation

 

Budgeted Income Statement

NovemberDecember
  (Click to

 

select)Cost of goods soldNet operating income (loss)Other monthly

 

expensesBad debt expenseSalesGross marginDepreciation

 

$   

 

$   

  (Click to

 

select)SalesNet operating income (loss)DepreciationOther monthly

 

expensesBad debt expenseGross marginAccounts payable

 

  

 

  

  (Click to

 

select)Gross marginAccounts payableOther monthly

 

expensesDepreciationNet operating income (loss)Cost of goods

 

soldSales

 

  

 

  

  (Click to select)Net

 

operating income (loss)Other monthly expensesCost of goods soldBad

 

debt expenseSalesGross marginDepreciation

 

  

 

  

  (Click to

 

select)Cost of goods soldGross marginBad debt expenseNet operating

 

income (loss)Other monthly expensesSalesInventory

 

  

 

  

  (Click to

 

select)SalesCost of goods soldBad debt expenseGross

 

marginInventoryDepreciationNet operating income (loss)

 

  

 

  

  (Click to

 

select)Gross marginCost of goods soldBad debt expenseSalesOther

 

monthly expensesNet operating income (loss)Depreciation

 

$   

 

$   

 

 

 

 

 

 

 

 

e.

 

Prepare a Budgeted Balance Sheet for the end of December.

 

(Be sure to enter your answers in the order of

 

liquidity.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welnor Industrial Gas Corporation

 

Budgeted Balance Sheet

 

December 31

 

Assets

  (Click to

 

select)Accounts receivableInventoryCashProperty, plant and

 

equipment

 

  

  (Click to

 

select)InventoryAccounts receivableCashProperty, plant and

 

equipment

 

  

  (Click to

 

select)CashInventoryAccounts receivableProperty, plant and

 

equipment

 

  

  (Click to

 

select)InventoryCashProperty, plant and equipmentAccounts

 

receivable

 

  

  Total assets

 

  

 

Liabilities and StockholdersA????1 Equity

  (Click to

 

select)Accounts payableCashRetained earningsCommon stock

 

  

  (Click to

 

select)CashInventoryAccounts payableCommon stock

 

  

  (Click to

 

select)InventoryCashAccounts payableRetained earnings

 

  

  Total liabilities

 

and stockholdersA????1 equity

 

  

 


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