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 80% in the month of sale and 20% in the month following the sale. The cost of goods sold is 72% 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 $21,500. . Monthly depreciation is $21,300. . Ignore taxes. Balance Sheet October 31 Assots Canh $ 22,300 Accounts receivable Merchandise inventory 83,300 201,600 1,007,000 Property, plant and equipment (net of $597,000 accumulated depreciation) Total assets $1,314,200 Liabilities and Stockholders' Equity Accounts payable $ 196,300 Common stock 650,000 Retained earnings 467,900 Total liabilities and stockholders' equity 1,314,200 Prepare a Merchandise Purchases Budget for November and December. November December Budgeted cost of goods sold Total needs Required purchases S Prepare Cash Budgets for November and December. Cash disbursements for merchandise Other monthly cash expenses Total cash disbursements Beginning cash balance. Add cash receipts Total cash available Less cash disbursements Excess (deficiency) of cash available over disbursements Financing Ending cash balance. Prepare Budgeted Income Statements for November and December. November December Sales Cost of goods sold Other monthly expenses Depreciation $ 0 0 $ 0 0 Required C Required E > k aces Prepare a Budgeted Balance Sheet for the end of December. Balance Sheet December 31 Assets Cash Accounts receivable Inventory Property, plant and equipment (net of accumulated depreciation) Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity