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Mikell supplies acetylene and other compressed gases to industry. Data regarding the store?s operations follow

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Question;Mikell;supplies acetylene and other compressed gases to industry. Data regarding the;store?s operations follow;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 and 25% in the month following the;sale. The cost of goods sold is 65% of;sales. The company maintains a targeted;ending inventory of 60% of the following month?s sales. Payment for merchandise;is made in the month following the purchase.;Other monthly expenses to be paid in cash are $21,900. Monthly depreciation is $20,000.;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;a Budgeted Income Statement for the two month period of November and December.;e.;Prepare;a Budgeted Balance Sheet for the end of December.

 

Paper#42909 | Written in 18-Jul-2015

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