points) Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: 2. (12 The company sells each unit for $45 Budgeted Sales October November December January 40,000 30,000 Month Sales in Units 30,000 25,000 Collections are expected to be 70% in the month of sale, 30% in the . month following the sale . T he A/R balance at September 30th will be collected in full in October .The cost of the merchandise is $38 per unit. In addition to meeting the current month's sales demand, management wants to maintain and ending inventory balance of 10% of the next month's sales. * The ending inventory balance at September 30th is 3,000 units. * The A/P balance at September 30th will be paid in full in October . The company has a line of credit for $500,000 at an annual interest . Loans are taken out on first day of month borrowed and repaid at the Payment for merchandise is made as follows: paid in the month of the purchase, 4 paid the month following the purchase. A dividend was paid in October for $500,000. Minimum cash balance is $100,000 rate of 12%. end of the quarter with interest. Balance Sheet September 30 Assets Cash. Accounts receivable Inventory. Property, plant and equipment S 100,000 250,000 114,000 (net of $200,000 accumulated depreciation. Total asses. 866.400 Liabilities and Stockholders' Equity Accounts payable S 300,000 Common stock 582,000 448.400 Retained earnings Total liabilities and stockholders' equity. $1,330400 Required a. Prepare a Sales Budget for October, November, December, and Quarter b. Prepare a Schedule of Expected Cash Collections for October, November, c. Prepare a Merchandise Purchases Budget for October, November, December, d. Prepare a Schedule of Expected Cash Disbursements for October, November, e. Prepare Cash Budgets for October, November, December, and Quarter. December, and Quarter. and Quarter. December, and Quarter. iust Sales Budget Units Sold Sales Price per unit Total Sales OctoberNvmber Decem December Quarter Schedule of Expected Cash Collections Beginning A/R October Sales November Sales December Sales Total October November DecemberQuarter Purchases Budget Quarter October November December Budgeted Sales +Desired ending inv. - total needs -Beginning inv. -Total Purchases X cost per unit =Total purchase cost Schedule of Expected Cash Disbursements Beginning A/P October Purchases November Purchases December Purchases December Quarter November October Total Cash Budget Quarter November December October Beginning Cash bal. +Cash collections -Cash Available Less: Cash Disburse. For Purchases Dividend -Total cash disburse Excess/(Deficiency) Borrowing Repayment Interest Ending Cash bal. HOLDS 220 SHEET