Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. Collections are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is 74% of sales. The company desires an ending merchandise inventory equal to 70% 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 $20,800. Monthly depreciation is $20,600. Ignore taxes.

Assets

Cash 21,600

Accounts receivable 82,600

Merchandise inventory 181,300

Property, plant and equipment (net of accumulated depreciation) 1,002,000

Total assets $1,287,500

Liabilities and Stockholders' Equity

Accounts payable 195,600

Common stock 570,000

Retained earnings 521,000

Total liabilities and stockholders equity

1,287,500

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.