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

Sales are budgeted at $360,000 for November, $380,000 for December, and $350,000 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.

The company desires an ending merchandise inventory equal to 60% 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 $21,900.

Monthly depreciation is $20,000.

Ignore taxes.

Balance Sheet

October 31

Assets:

Cash

$16,000

Accounts receivable (net of allowances for uncollectable accounts

$74,000

Merchandise inventory

$140,400

Property, plant and equipment (net of $500,000 accumulated depreciation)

$1,066,000

Total Assets:

$1,296,400

Liabilities and Stockholders' Equity:

Accounts payable

$240,000

Common stock

$640,000

Retained earnings

$416,000

Total liabilities and stockholders' equity:

$1,296,400

Required:

a. Prep a Schedule of Expected Cash Collections for November and December.

b. Prep 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. Prep a Budgeted Balance Sheet for the end of December.