3. 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. Assets Cash. Balance Sheet October 31 $ 16,000 Accounts receivable (net of allowance for uncollectible accounts) Merchandise inventory. Property, plant and equipment (net of $500,000 accumulated depreciation). Total assets. Liabilities and Stockholders' Equity 74,000 140,400 1.055.000 $1.296.400 Accounts payable Common stock Retained eamings.. Total liabilities and stockholders' equity 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. $ 240,000 640,000 416 400 $1.296.400