hw_4 - Business Cycle Accounting - Homework 4 1. Weller...

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Business Cycle Accounting - Homework 4 1. 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. 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.
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investment project: The company uses a discount rate of 17%. Required:
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This note was uploaded on 10/12/2009 for the course HA 42510 taught by Professor Nisahverma during the Spring '09 term at New College CA.

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hw_4 - Business Cycle Accounting - Homework 4 1. Weller...

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