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

	Sales are budgeted at $340,000 for November, $360,000 for December, and $350,000 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 68% 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 $22,000.
	Monthly depreciation is $17,000.
	Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	23,000
Accounts receivable (net of allowance for uncollectible accounts)		83,000
Merchandise Inventory		184,960
Property, plant and equipment (net of $668,000 accumulated depreciation)		1,170,000
Total assets	$	1,460,960
Liabilities and Stockholders Equity
Accounts payable	$	200,000
Common stock		940,000
Retained earnings		320,960
Total liabilities and stockholders equity	$	1,460,960

Required:

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	$231,200	$244,800
Add: Desired ending merchandising inventory	195,840	190,400
Total needs	427,040	435,200
Deduct: Beginning merchandise inventory	184,960	191,760
Required purchase	$242,080	$243,440

c.

Prepare Cash Budgets for November and December. (Input all amounts as positive values.) WELDON INDUSTRIAL GAS CORPORATIONCash BudgetNovemberDecemberCash disbursements for merchandiseOther monthly cash expensesTotal cash disbursements$0$0Cash balance, beginningAdd cash receiptsTotal cash available00Less cash disbursementExcess (deficiency) of cash available over disbursements00FinancingCash balance, ending$0$0

d.	Prepare Budgeted Income Statements for November and December.

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