Dragon1428 Posts: 1, Reputation: 1 New Member   #1 May 4, 2015, 07:08 PM

Hey just wondering if these numbers are correct for the first two parts Weltin Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $390,000 for November, $370,000 for December, and $380,000 for January. • Collections are expected to be 90% in the month of sale, 5% in the month following the sale, and 5% uncollectible. • The cost of goods sold is 60% of sales. • The company purchases 70% of its merchandise in the month prior to the month of sale and 30% 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 $21,800. • Monthly depreciation is $18,000. • Ignore taxes. Weltin Industrial Gas Corp. November December January Beginning AR $71,000.00 Sales $351,000.00 $333,000.00 $19,500.00 $342,000.00 Total Cash Collected $422,000.00 $352,500.00 $342,000.00 COGS $234,000.00 $222,000.00 $228,000.00 Merch. Purchases $70,200.00 $159,600.00 $155,400.00 $66,600.00 $68,400.00 Total $225,600.00 $226,200.00 $68,400.00 Hey just wondering if these numbers are correct for the first two parts

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