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) $ 21,400 81,400 182,400 1,170,000 Total assets $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 Required: a. Prepare a Schedule of Expected Cash Collections for November and December WELDON INDUSTRIAL GAS CORPORATION Schedule of Expected Cash Collections November December S 300,000320,000 Schedule of Expected Cash Collections Accounts receivable 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.) WELDON INDUSTRIAL GAS CORPORATION Merchandise Purchases Budget November December Budgeted cost of goods sold Total needs Required purchase