Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January. Collections are expected to be 75% in the month of sale, 23% in the month following the sale, and 2% uncollectible. The cost of goods sold is 74% of sales. The company desires an ending merchandise inventory equal to 75% 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 $22,200 Monthly depreciation is $17,200 Ignore taxes. Balance Sheet October 31 Assets Cash 23.200 83,200 Accounts receivable (net of allowance for uncollectible accounts) Merchandise Inventory 199,800 Property, plant and equipment (net of $670,000 accumulated depreciation) 1,170,000 Total assets 1,476,200 Liabilities and Stockholders' Equity 200,200 Accounts payable 830,000 Common stock 446,000 Retained earnings Total liabilities and stockholders' equity 1,476,200