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.

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.