Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:
- Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January.
- Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollectible.
- The cost of goods sold is 60% 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 $21,200.
- Monthly depreciation is $21,000.
- Ignore taxes.
Statement of Financial Position
October 31
Assets:
Cash $ 22,000
Accounts receivable, net of allowance for doubtful accounts 83,000
Inventory 158,400
Property, plant and equipment
Net of $594,000 accumulated depreciation 1,004,000
Total assets $1,267,400
Liabilities and Stockholders’ Equity:
Accounts payable 196,000
Common Stock 620,000
Retained earnings 451,400
Total liabilities and stockholders’ equity $1,267,400
Okay, so I was supposed to get a budgeted balance sheet for the end of December, but some how Asset sides and Liability+Equity does not balance.
Can you tell me what's wrong with my answer?
Budgeted Balance Sheet
Assets:
Cash $264,700.00
Accounts receivable (net of allowance for uncollectable accounts):
(14%*$300000) $42,000.00
Inventory $153,600.00
Property, plant, equipment $962,000.00
Total Assets $1,422,300.00
Liabilities and Stockholder's Equity:
Accounts Payable $189,600.00
Common stock $620,000.00
Retained earnings ($451400+$98,800+$110800) $661,000.00
Total Liabilities and equity $1,470,600.00
