Problem 2 Dresser Corporation sells bedroom furniture. Data regarding the store's operations follow: Sales are budgeted at $330,00 for November, $300,000 for December, and $320,000for 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. Monthly depreciation is $21,000. Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment (net of $594,000 accumulated depreciation)1,004,000o $ 22,000 83,000 158,400 Total assets $ 1,267 400 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 196,000 620,000 451,400 1,267,400 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