Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the stores 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% uncollectible.

The cost of goods sold is 60% of sales.

The company purchases 80% of its merchandise in the month prior to the month of sale and 20% in the month of sale. Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $21,200. Monthly depreciation is $21,000.

Ignore taxes.

2 Statement of Financial Position As at October 31 Assets Cash $ 22,000 Accounts receivable (net of allowance for uncollectible accounts) 83,000 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. (6 marks)

b. Prepare a Merchandise Purchases Budget for November and December. (8 marks)

c. Prepare Cash Budgets for November and December. (8 marks)

d. Prepare Budgeted Income Statements for November and December. (13 marks) e. Prepare a Budgeted Statement of Financial Position for the end of December. (15 marks)