Weller Industrial Gas Corporation supplies acetylene 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 and 15% in the month following the sale. The cost of goods sold is 60% 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 $21,200. The monthly depreciation is $21,000.

Ignore taxes.

Balance Sheet October 31

Assets Cash $ 22,000

Accounts receivable 83,000

Merchandise inventory 158,400

Property, plant, and equipment (net of $594,000 accumulated depreciation) 1,004,000

Total assets $ 1,267,400

Liabilities and Stockholders' Equity Accounts payable $ 196,000

Common stock 620,000

Retained earnings 451,400

Total liabilities and stockholders' equity $ 1,267,400

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.