Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

• The company sells each unit for $45.

Budgeted Sales:

Month	October	November	December	January
Sales in Units	30,000	25,000	40,000	30,000

• Collections are expected to be 70% in the month of sale, 30% in the month following the sale.
• The A/R balance at September 30th will be collected in full in October.
• The cost of the merchandise is $38 per unit.
• In addition to meeting the current months sales demand, management wants to maintain and ending inventory balance of 10% of the next months sales.
• The beginning inventory balance at October 1st is 3,000 units.
• Payment for merchandise is made as follows: paid in the month of the purchase, paid the month following the purchase.
• The A/P balance at September 30th will be paid in full in October.
• A dividend was paid in October for $500,000.
• Minimum cash balance is $100,000.
• The company has a line of credit for $500,000 at an annual interest rate of 12%.
• Loans are taken out on first day of month borrowed and repaid at the end of the quarter with interest.

	Balance Sheet
	September 30
	Assets
	Cash	$ 100,000
	Accounts receivable	250,000
	Inventory	114,000
	Property, plant and equipment (net of $200,000 accumulated depreciation)	866,400
	Total assets	$1,330,400
	Liabilities and Stockholders Equity
	Accounts payable	$ 300,000
	Common stock	582,000
	Retained earnings	448,400
	Total liabilities and stockholders equity	$1,330,400

Required:

1. Prepare a Sales Budget for October, November, December, and Quarter.
2. Prepare a Schedule of Expected Cash Collections for October, November, December, and Quarter.
3. Prepare a Merchandise Purchases Budget for October, November, December, and Quarter.
4. Prepare a Schedule of Expected Cash Disbursements for October, November, December, and Quarter.
5. Prepare Cash Budgets for October, November, December, and Quarter.

Sales Budget

	October	November	December	Quarter
Units Sold
Sales Price per unit
Total Sales

Schedule of Expected Cash Collections

	October	November	December	Quarter
Beginning A/R	$250,000
October Sales
November Sales
December Sales
Total

Purchases Budget

	October	November	December	Quarter
Budgeted Sales (units)
+Desired ending inv.
= total needs
-Beginning inv.	(3,000)
=Total Purchases
X cost per unit
=Total purchase cost

Schedule of Expected Cash Disbursements

	October	November	December	Quarter
Beginning A/P	$300,000
October Purchases
November Purchases
December Purchases
Total