2 Industrial 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. The cost of goods sold is 65% 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 $21,000. Monthly depreciation is $16,000. Ignore taxes. Assets Statement of Financial Position October 31 Cash...... $22,000 Accounts receivable (net of allowance for uncollectible accounts). 82,000 Merchandise inventory 166,400 Property, plant and equipment (net of $658,000 accumulated depreciation). 1,170,000 Total assets $1,440,400 Liabilities and Stockholders' Equity Accounts payable Common stock...... Retained earnings...... Total liabilities and stockholders' equity. $199,000 840,000 401,400 $1,440,400