Question 3 (Total 20 points) Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to the industry. Data regarding the store's operations follow: 0 Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 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. 0 The company desires to end merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. 0 Other monthly expenses to be paid in cash are $21,000. 0 The monthly depreciation is $16,000. - Ignore taxes. *Accounts receivable will be collected in cash in November. ** Accounts payable will be paid in cash in November. Statement of Financial Position October 31 Assets Cash ............................................................................................. $ 22,000 Accounts receivable (net of allowance for uncollectible accounts) .......................... 82,000 Inventory ..................................................................................... 166,400 Property, plant and equipment (net of $500,000 accumulated depreciation) ........................... 1,170,000 Total assets .................................................................................. $1,440,400 Liabilities and Stockholders' Equity Accounts payable ........................................................................ $ 199,000 Common stock ............................................................................. 840,000 Retained earnings ........................................................................ 401 ,400 Total liabilities and stockholders\" equity .................................... $1,440,400 *Accounts receivable will be collected in cash in November. ** Accounts payable will be paid in cash in November. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. (5 points) b. Prepare 3 Merchandise Purchases Budget for November and December. (5 points) 0. Prepare Cash Budgets for November and December. (5 points) (1. Prepare Budgeted Income Statements for November and December. (5 points)