Harry Industrial Gas 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 70% in the month of sale and 30% in the month following the sale. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 75% 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 $20,700. Monthly depreciation is $20,500. Ignore taxes.

Balance Sheet October 31 Assets Cash $ 21,500 Accounts receivable 82,500 Merchandise inventory 180,000 Property, plant and equipment (net of $591,000 accumulated depreciation) 1,001,000 Total assets $ 1,285,000 Liabilities and Shareholder's Equity Accounts payable $ 195,500 Common shares 560,000 Retained earnings 529,500 Total liabilities and shareholder's equity $ 1,285,000

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.