Question

Student Login | Trid... Employee Self-Servi... Login | Salesforce Home CNSSS : Home Trident Main Site... Calendar - Events - rs 6-10 Saved Help Save & Exit Submit Check my work Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $380,000 for November, $400,000 for December, and $390,000 for January • Collections are expected to be 75% in the month of sale and 25% in the month following the sale. • The cost of goods sold is 72% of sales. • The company desires an ending merchandise inventory equal to 85% 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 $21,000. • Monthly depreciation is $20.800 • lgnore taxes. Balance Sheet October 31 Assets Accounts receivable Merchandise inventory Property, plant and equipment (net of $608, eee accumulated depreciation) Total assets $ 21,880 82, see 232, 560 1,018, eee $1,355,168 < Prev 4 of 5 Next > 12:49 PM 2/17/2020 ere to search TC0312

please answer. thank you

Answer 1

1.

Cash Collections budget
	November	December	Total
Collections in same month 75%	$        285,000	$       300,000	$       585,000
Collections in following month 25%	$           82,800	$          95,000	$       177,800
Total Cash Collections	$        367,800	$       395,000	$       762,800

2.

Merchandise Purchase Budget
	November	December	Total
Cost of Goods Sold @72%	$        273,600	$       288,000	$       561,600
Ending Inventory	$        244,800	$       238,680	$       238,680
Total Needs	$        518,400	$       526,680	$       800,280
Beginning Inventory	$        232,560	$       244,800	$       232,560
Budgeted Purchases	$        285,840	$       281,880	$       567,720

3.

Cash Budget
	November	December	Total
Cash Disbursement for merchandise	$        195,800	$       285,840	$       481,640
Other monthly cash expenses	$           21,000	$          21,000	$         42,000
Total cash disbursements	$        216,800	$       306,840	$       523,640
Beginning cash Balance	$           21,800	$       172,800	$         21,800
Add Cash Receipts	$        367,800	$       395,000	$       762,800
Total Cash available	$        389,600	$       567,800	$       784,600
Less cash disbursements	$        216,800	$       306,840	$       523,640
Excess (Deficiency)	$        172,800	$       260,960	$       260,960
Financing
Ending Cash balance	$        172,800	$       260,960	$       260,960

4.

Income Statement
	November	December
Sales	$        380,000	$       400,000
Cost of Goods Sold	$        273,600	$       288,000
Gross Profit	$        106,400	$       112,000
Other monthly Expenses	$           21,000	$          21,000
Depreciation	$           20,800	$          20,800
Net Income	$           64,600	$          70,200

5.

Balance Sheet
Dec-31
Assets
Cash	$        260,960
Accounts Receivable	$        100,000
Iventory	$        238,680
PPE	$        976,400
Total Assets	$     1,576,040
Liabilities & Stockholders Equity
Accounts Payable	$        281,880
Common Stock	$        590,000
Retained Earnings	$        704,160
Total Liabilities & Stockholders Equity	$     1,576,040