Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $310,000 for November, $330,000 for December, and $320,000 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 70% of sales. The company desires an ending merchandise inventory equal to 75% 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 $21,700. Ignore taxes.

Balance Sheet

October 31

Assets

Cash $ 22,700

Accounts receivable 83,700

Merchandise inventory 162,750

Property, plant and equipment (net of $601,000 accumulated depreciation) 1,011,000

Total assets $ 1,280,150

Liabilities and Stockholders' Equity

Accounts payable $ 196,700

Common stock 690,000

Retained earnings 393,450

Total liabilities and stockholders' equity $ 1,280,150

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.