Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:
Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January.Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.
- Welnor Corporation
- Balance Sheet
- October 31, 2011
- ASSETS
- Cash $ 22,000
- Accounts receivable (net of allowance for uncollectible accounts) 82,000
- Merchandise inventory 166,400
- Common stock 840,000
- Retained earnings 401,400
- Total liabilities and stockholders' equity $ 1,440,000
On the following page, prepare Schedules of Expected Cash Collections for November and December in good form. Ignore taxes.