Chevron supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: - Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January. ' Collections are expected to be 85% in the month of sale and 15% in the month following the sale. - The cost of goods sold is 60% of sales. - The company desires an ending merchandise inventory equal to 80% 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 $21,200. - The company is planning to purchase capital equipment with cash for $210,000 in November. - Their minimum cash balance is $15,000. If the company needs to borrow money, they borrow it at the beginning of the month and pay it at the end of the month in which it is repaid. They borrow at an annual rate of 12%. Balance Sheet October 31 Assets Cash $ 22,000 Accounts receivable 83,000 Merchandise inventory 158,400 Property, plant and equipment (net of $594,000 accumulated 1 004 000 depreciation) ' ' Total assets $ 1,267,400 Liabilities and Stockholders' Equity Accounts payable $ 196,000 Common stock 620,000 Retained earnings 451,400 Total liabilities and stockholders' equity $ 1 267,400 Required (5 points each): a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget and a Cash Disbursements Budget for November and December. c. Prepare Cash Budgets for November and December