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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,

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 $350,000 for January.

Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.

The cost of goods sold is 65% of sales. The company desires an ending merchandise inventory equal to 60% 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 $21,900.

Monthly depreciation is $20,000.

Ignore taxes.

Balance Sheet
31-Oct
Assets
Cash $16,000
Accounts receivable (net of allowance for uncollectible accounts) 74,000
Merchandise inventory 140,400
Propery, plant and equipment (net of $500,000 accumulated depreciation) 1,066,000
Total assets $1,296,400
Liabilities and Stockholders' Equity
Accounts payable 240,000
Common stock 640,000
Retained earnings 416,400
Total liabilities and stockholders' equity 1296400

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

b. Prepare a Merchandise Purchases Budget for November and December.

c. Prepare Cash Budgets for November and December.

d. Prepare Budgeted Income Statements for November and December.

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

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