Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: o Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January. o Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible. o The cost of goods sold is 65% of sales. o The company desires ending merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $21,000. o Monthly depreciation is $16,000. o Ignore taxes.

Statement of Financial Position

October 31

Assets
Cash	$22,000
Accounts receivable (net of allowance for uncollectible accounts)	$82,000
Merchandise inventory	$166,400
Property, plant and equipment (net of $658,000 accumulated depreciation)	$1,170,000
Total assets	$1,440,400
Liabilities and Stockholders' Equity
Accounts payable	$199,000
Common stock	$840,000
Retained Earnings	$401,400
Total liabilities and stockholders' equity	$1,440,400

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.