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 purchases $60\%$ of its merchandise in the month prior to the month

of sale and $40\%$ in the month of sale. 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.$

$?$gnore taxes.

Statement of Financial Position

October $31$

Assets

Cash

Accounts receivable

$($net of allowance for uncollectible accounts$)$

Inventory

Property, plant and equipment

$($net of $$500,000$ accumulated depreciation$)$

Total assets $.$

Liabilities and Stockholders' Equity

Accounts payable

Common stock

Retained earnings

Total liabilities and stockholders' equity

$ $16,000$

$74,000$

$140,400$

$1,066,000$

$$1,296,400$

$$240,000$

$640,000$

$416,400$

$$$1,296,{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.

The Gourmand Cooking School runs short cooking courses at its small campus.

Management has identified two cost drivers it uses for budgeting purposes $-$ the

number of courses and the total number of students. For example, the school might

run two courses in a month and have a total of $63$ students enrolled in those two

courses. Data concerning the company's cost formulas appear below:

For example, administrative expenses should be $$3,600$ per month plus $$46$ per course

plus $$7$ per student. The company's sales should average $$890$ per student.

The company planned to run four courses with a total of $63$ students; however, it

actually ran four courses with a total of only $53$ students. The actual operating results

for September were as follows:

Prepare a flexible budget performance report for September. Indicate the effect of

each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no

effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.