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 $61,900. Monthly depreciation is $20,000.

Equipment purchased in December of $55,000.

Dividend paid in December of $75,000.

Financing: If cash is over $50,000 at the end of any month, pay back loan in increments of $5,000. If cash is under 15,000 at the end of any month, borrow in $5,000 increments.

Ignore taxes.

Balance Sheet

October 31

Assets:

Cash $ 16,000

Accounts receivable (net of allowance for uncollectible 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

Notes payable 115,000

e. Prepare a Budgeted Balance Sheet for the end of December

Balance Sheet

December 31

Assets:

Cash $

Accounts receivable (net of allowance for uncollectible accounts)

Merchandise inventory

Property, plant and equipment (net of $540,000 accumulated depreciation) .

Total assets $ .

Liabilities and Stockholders Equity:

Accounts payable $

Notes payable

Common stock

Retained earnings .

Total liabilities and stockholders equity $

Common stock 640,000

Retained earnings 301,400

Total liabilities and stockholders equity $1,296,400