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 Shareholder's Equity
Accounts payable	$	196,700
Common shares		690,000
Retained earnings		393,450
Total liabilities and shareholder's 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.

Complete this question by entering your answers in the tabs below.

• Required A
• Required B
• Required C
• Required D
• Required E

Prepare a Schedule of Expected Cash Collections for November and December.

	November	December
Sales
Schedule of Expected Cash Collections
Accounts receivable
November sales
December sales
Total cash collections

• Required A
• Required B