TB Problem Qu. 8-209 (Static) Weller Industrial Gas Corporation... Weller Industrial Gas Corporation 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. Monthly depreciation is $21,000. Ignore taxes. 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 depreciation) 1,004,000 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: 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.