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

Sales are budgeted at $370,000 for November, $390,000 for December, and $380,000 for January.

Collections are expected to be 80% in the month of sale and 20% in the month following the sale.

The cost of goods sold is 71% 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 $21,100.

Monthly depreciation is $20,900.

Ignore taxes.

Balance Sheet

October 31

Assets

Cash $ 21,900

Accounts receivable 82,900

Merchandise inventory 210,160

Property, plant and equipment (net of $607,000 accumulated depreciation) 1,017,000

Total assets $ 1,331,960

Liabilities and Stockholders' Equity

Accounts payable $ 195,900

Common stock 600,000

Retained earnings 536,060

Total liabilities and stockholders' equity $ 1,331,960

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.