Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January Collections are expected to be 75% in the month of sale, 22% in the month following the sale, and 3% uncollectible. The cost of goods sold is 74% of sales . The company desires an ending merchandise inventory equal to 70% 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 $20,600 Monthly depreciation is $15,600 . Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Merchandise Inventory Property, plant and equipment (net of $656,000 accumulated depreciation) $21,600 81,600 181,300 1,170,000 Total assets $1,454,500 Liabilities and Stockholders' Equity Accounts payable Common stock $ 198,600 790,000 465,900 Retained earnings Total liabilities and stockholders' equity $1,454,500