Weller Industrial Gas Corporation supplies acetyene and other compressed gases to industry.

Data regarding the store's operations follow:

• Sales are budgeted at $330,000 for November, 300,000 for December, and 320,000 for January.
• Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollection.
• The goods of goods sold is 60% of sales.
• the company purchase 80% of its mechandies in the month prior to the month of sale and 20% in the month of sale. Payment for merchandies is made in the month following the purchase.
• othe monthly expenses to be paid in cash are $21,200.
• Monthly depreciation is 21,000.
• Ignore taxes.

Statement of Financial Position, October 31

- Assets

Cash $22,000

Accounts receivable(net) $83,000

Inventory $158,000

Property, plant and equipment (net of 594,000

accumulated depreciation) $1,004,000

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-Total assets $1,267,400

-Liabilities and Stockholders' equity

Accounts payable $196,000

Common stock $620,000

Retained earings $451,400

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Total libailities and stockholders's equity $1,267,400

Required:

1. prepare a schedual of expected cash collections for Noveber and December.
2. prepare a merchandise purchases budget for Noveber and December.
3. prepare cash bufgets for Noveber and December.
4. prepare budget income statements for Noveber and December.
5. prepare a budgeted balance sheet for the end of December.