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

	Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 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 66% of sales.
	The company desires an ending merchandise inventory equal to 80% 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 $21,800.
	Monthly depreciation is $16,800.
	Ignore taxes.

Balance Sheet October 31

Assets

Cash

$

22,800

Accounts receivable (net of allowance for uncollectible accounts)

82,800

Merchandise Inventory

168,960

Property, plant and equipment (net of $666,000 accumulated depreciation)

1,170,000

Total assets

$

1,444,560

Liabilities and Stockholders Equity

Accounts payable

$

199,800

Common stock

920,000

Retained earnings

324,760

Total liabilities and stockholders equity

$

1,444,560

Required:

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

Welnor Industrial Gas Corporation Schedule of Expected Cash Collections
	November	December
Sales	$	$
Accounts receivable, beginning balance	$	$
November sales
December sales
Total cash collections	$	$

b.

Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Do not round intermediate calculations.)

Welnor Industrial Gas Corporation Merchandise Purchases Budget
	November	December
Budgeted cost of goods sold	$	$
(Click to select)Add desired ending merchandising inventoryAdd beginning merchandise inventoryLess beginning merchandise inventoryLess desired ending merchandising inventory
Total needs
(Click to select)Add beginning merchandise inventoryLess desired ending merchandising inventoryLess beginning merchandise inventoryAdd desired ending merchandising inventory
Required purchases	$

c.

Prepare Cash Budgets for November and December. (Input all amounts as positive values.)

Welnor Industrial Gas Corporation Cash budget
	November	December
Cash disbursement for merchandise	$	$
Other monthly cash expenses
Total cash disbursements	$	$
Cash balance, beginning	$	$
Add cash receipts
Total cash available
Less cash disbursements
Excess (deficiency) of cash available over disbursements
Financing
Cash balance, ending	$	$

d.

Prepare Budgeted Income Statements for November and December. (Input all amount as positive values.)

Welnor Industrial Gas Corporation Budgeted Income Statements
	November	December
(Click to select)Other monthly expensesCost of goods soldDirect materialsSalesDepreciation	$	$
(Click to select)Direct materialsOther monthly expensesDepreciationBad debt expenseAccounts payable
(Click to select)Direct materialsDepreciationOther monthly expensesCost of goods soldAccounts payable
(Click to select)Gross marginGross loss
(Click to select)Bad debt expenseCost of goods soldAccounts receivableOther monthly expensesSales
(Click to select)DepreciationSalesCost of goods soldBad debt expenseAccounts receivable
(Click to select)Net operating lossNet operating income	$	$

Prepare a Budgeted Balance Sheet for the end of December. (Be sure to list the assets and liabilities in order of their liquidity.)

Welnor Industrial Gas Corporation Budgeted Balance Sheet December 31
Assets
(Click to select)Accounts receivableAccounts payableRetained earningsCashCommon stock	$
(Click to select)Accounts receivableRetained earningsBulidings and equipmentCashAccounts payable
(Click to select)Accounts receivableInventoryRetained earningsCashAccounts payable
(Click to select)CashAccounts receivableAccounts payableRetained earningsProperty, plant and equipment
Total assets	$
Liabilities and Stockholders' Equity
(Click to select)Property, plant and equipmentCashInventoryAccounts receivableAccounts payable	$
(Click to select)Property, plant and equipmentAccounts receivableAccounts payableInventoryCommon stock
(Click to select)Retained earningsInventoryAccounts receivableAccounts payableProperty, plant and equipment
Total liabilities and stockholders' equity	$