Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $310,000 for November, $330,000 for December, and $320,000 for January . Collections are expected to be 80% in the month of sale, 18% in the month following the sale, and 2% uncollectible . The cost of goods sold is 70% 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 $21,700 Monthly depreciation is $16,700 .Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Merchandise Inventory Property, plant and equipment (net of $665,000 accumulated depreciation) $ 22,700 82,700 162,750 1,170,000 Total assets $ 1,438,150 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 199,700 910,000 328,450 Total liabilities and stockholders' equity $ 1,438,150