[gencampos]

I need help in the following please asap! idk how to do any of it!

1. 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.

Statement of financial position
October 31

Assets
Cash... $25,000
Accounts rec. (net allowance
For uncollectible accounts)... 71,000
Inventory... 163,800
Property, plant and equipment(net of
$504,000 accumulated depriciation)... 1,088,000
Total assets... $1,347,800

Liabilities and stockholders equity
Accounts payable... $232,000
Common stock... 700,000
Retained earnings... 415,800
Total liabilities and stockholdhers equity... $1,347,800

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 Budgeted Income Statements for November and December.

e. Prepare a Budgeted Balance Sheet for the end of December.

[ma0641]

And giving you the amswers won't help you learn how to! We do not do your homework for you. Give it a try and we'll try to help.

[gencampos]

O I know I gave it a try, I didn't mean for my question to sound like I wanted to have my homework did for me, so I found the cash collections I think, and I also found the COGS for November is 234,000, December 222,000, and January 228,000. The beginning inventory for each month is the following: November 163,800, December 155,400. Is that right? Also the cash collections for November I got 369,500 and December 352,000, I don't know if that's right, but I did the sales from November (390,000*.9) plus the 5% of sales from December which is 185,000 and got the 369,500 for November. As for December I did (370.000*.9) plus (380,000*.05) and that's how I got 352,000 for the month of December.

[gencampos]

For the merchandise purchases budget the desired ending inventory for November is 155,400 and for December is 159,600, which means the requiered purchases for November are 225,600 and for December is 226,200 is any of this correct? I'm stuck on the income statement.