1) Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

Sales are budgeted at $360,000 for November, $380,000 for December, and $350,000 for January.

Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.

The cost of goods sold is 65% of sales.

The company desires an ending merchandise inventory equal to 60% of the cost of goods sold in the following month.

Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $21,900.

Monthly depreciation is $20,000.

Ignore taxes.

Balance Sheet October 31

Assets

Cash 16,000

Accounts receivable(net of allowance for uncollectible accounts) 74,000

Merchandise Inventory 140,400

Property, plant and equipment (net 500,000 accumulated depreciation) 1,066,000

Totalassets 1,296,400

Liabilities and Stockholders' Equity

Accounts payable 240,000

Common stock 640,000

Retained earnings 416,400

Total liabilities and stockholders' equity 1,296,400

Required:

a. Put togethera Schedule of Expected Cash Collections for November and December.

b. Put together a Merchandise Purchases Budget for November and December.

c. Put togetherCash Budgets for November and December.

d. Put togetherBudgeted Income Statements for November and December.

e. Put togethera Budgeted Balance Sheet for the end of December.