Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Perfect Gas Corporation supplies compressed gases to industry customers. Data regarding the store's operations follow:

• Sales are budgeted at $345,000 for November, $230,000 for December, and $320,000 for January.

• Collections are expected to be 60% in the month of sale, 34% in the month following the sale, and 6% uncollectible.

• The cost of goods sold is 70% of sales.

• The company desires ending merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

• Other monthly expenses to be paid in cash are $12,000.

• Monthly depreciation is $16,000.

• Equipment purchases of $110,000 were paid in cash in November.

• Dividends of $35,000 were declared and paid in December.

• Any borrowings must be in $1,000 increments at 7% interest. Assume interest accrues at the beginning of the month and is paid at the end of the month. The company must maintain a minimum cash balance of $5,000.

• Ignore income taxes.

Prepare the following budgets for November and December and total for the two months in good form in excel and submit via bblearn by 5/9 at noon:

a. Prepare a Schedule of Expected Cash Collections

b. Prepare a Merchandise Purchases Budget

c. Prepare Cash Budgets

d. Prepare Budgeted Income Statements

e. Prepare a Budgeted Balance Sheet

Prepare a letter/memo to the company's CEO with specific recommendations regarding your budget.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M945752

Have any Question? 


Related Questions in Accounting Basics

In the wake of the accounting and finance scandals of the

In the wake of the accounting and finance scandals of the early 2000s, the regulatory environment for businesses changed dramatically to create more accountability and transparency. Agencies like the Securities and Excha ...

Assessment one - business research report proposal initial

Assessment One - Business Research Report Proposal: Initial Research Proposal The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questi ...

Qestion 1beginning inventory24 tires 61purchase6 tires

QUESTION 1. Beginning inventory........24 tires @ $61 Purchase.........6 tires @ $76 Sale.......17 tires @ $105 Requirements 1. Compute cost of goods sold and gross profit under FIFO. 2. Compute cost of goods sold and gr ...

Assignment business analyticsthis assignment requires you

Assignment Business Analytics This Assignment requires you to use Excel in all three questions. Make sure you explain your answers and provide the regression output tables for questions 1 and 2. Submit your Assignment to ...

Effect of financing on earnings per sharethree different

Effect of Financing on Earnings Per Share Three different plans for financing a $4,400,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their ...

1 identify an industry to focus on it is suggested that you

1) Identify an industry to focus on (It is suggested that you use an industry that is expanding rather than consolidating, but the choice is yours to make). Explain why you chose this industry and its environment. 2) Ide ...

Essay question internal accountingone to two pages single

Essay Question Internal Accounting One to two pages (single spaced, Times New Roman 12 font) discussion. Clear and well-argued showing depth of knowledge and understanding of the concepts. Check grammar and spelling. Que ...

Brief exercise 17-3carow corporation purchased as a

Brief Exercise 17-3 Carow Corporation purchased, as a held-to-maturity investment, $70,500 of the 10%, 7-year bonds of Harrison, Inc. for $77,947, which provides a 8% return. The bonds pay interest semiannually. Prepare ...

Assignment comparing capital expenditurescomparing capital

Assignment: Comparing Capital Expenditures Comparing Capital Expenditures Select a company and access the last three years' annual reports. Next, select a company that is a direct competitor and download the previous thr ...

Question 1the following information relates to the

Question 1 The following information, relates to the imputation credit account (ICA) for Killorglin Park Fair Ltd ("Killorglin Park") for the year ending 31 March 2016. (i) The shareholders as at 31 March 2015 were Donna ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen