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

Sales are budgeted at $390,000 for November, $410,000 for December, and $400,000 for January.

Collections are expected to be 80% in the month of sale, 15% in the month following the sale, and 5% uncollectible.

The cost of goods sold is 73% 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 $20,700.

Monthly depreciation is $15,700.

Ignore taxes.

Balance Sheet October 31

Assets

Cash

$

21,700

Accounts receivable (net of allowance for uncollectible accounts)

81,700

Merchandise Inventory

227,760

Property, plant and equipment (net of $657,000 accumulated depreciation)

1,170,000

Total assets

$

1,501,160

Liabilities and Stockholders Equity

Accounts payable

$

198,700

Common stock

800,000

Retained earnings

502,460

Total liabilities and stockholders equity

$

1,501,160

Required:

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

WELDON INDUSTRIAL GAS CORPORATION
Schedule of Expected Cash Collections
	November	December
Sales
Schedule of Expected Cash Collections
Accounts receivable
November sales
December sales
Total cash collections	$0	$0

b.

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

WELDON INDUSTRIAL GAS CORPORATION
Merchandise Purchases Budget
	November	December
Budgeted cost of goods sold
Total needs	0	0
Required purchase	$0	$0

c.

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

WELDON INDUSTRIAL GAS CORPORATION
Cash Budget
	November	December
Cash disbursements for merchandise
Other monthly cash expenses
Total cash disbursements	$0	$0
Cash balance, beginning
Add cash receipts
Total cash available	0	0
Less cash disbursement
Excess (deficiency) of cash available over disbursements	0	0
Financing
Cash balance, ending	$0	$0

d.

Prepare Budgeted Income Statements for November and December.

WELDON INDUSTRIAL GAS CORPORATION
Budgeted Income Statement
	November	December
	0	0
	$0	$0

e.

Prepare a Budgeted Balance Sheet for the end of December.

WELDON INDUSTRIAL GAS CORPORATION
Budgeted Balance Sheet
December 31
Assets
Total assets	$0
Liabilities and Stockholders Equity
Total liabilities and stockholders equity	$0