Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow Sales are budgeted at $300,000 for November, $320,000 for December, and $310,000 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 76% 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 $20,400 Monthly depreciation is $15,400 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Merchandise Inventory Property, plant and equipment (net of $654,000 accumulated depreciation) Total assets 21,400 81,400 182,400 1,170,000 $ 1,455,200 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 198,400 770,000 486,800 Total liabilities and stockholders' equity $ 1,455,200