Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

	Sales are budgeted at $470,000 for November, $480,000 for December, and $470,000 for January.
	Collections are expected to be 72% in the month of sale, 25% in the month following the sale, and 3% uncollectible.
	The cost of goods sold is 70% of sales.
	The company desires ending merchandise inventory to equal 50% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
	Other monthly expenses to be paid in cash are $21,000.
	Monthly depreciation is $20,000.
	Ignore taxes.

Statement of Financial Position October 31
Assets
Cash		$	24,000
Accounts receivable (net of allowance for uncollectible accounts)			82,000
Merchandise inventory			164,500
Property, plant and equipment (net of $860,000 accumulated depreciation)			1,183,000
Total assets		$	1,453,500
Liabilities and Stockholders' Equity
Accounts payable		$	186,000
Common stock			720,000
Retained earnings			547,500
Total liabilities and stockholders' equity		$	1,453,500

Required:
a.	Prepare a Schedule of Expected Cash Collections for November and December. (Leave no cells blank - be certain to enter "0" wherever required.)

Welnor Industrial Gas Corporation Schedule of Expected Cash Collections
	November	December
Sales	$	$
Accounts receivable, beginning balance	$	$
November sales
December sales
Total cash collections	$	$

b.	Prepare a Merchandise Purchases Budget for November and December. (Input all amount as positive values.)

Welnor Industrial Gas Corporation Merchandise Purchases Budget
	November	December
Budgeted cost of goods sold	$	$
(Click to select)Add desired ending merchandising inventoryLess desired ending merchandising inventoryAdd beginning merchandise inventoryLess beginning merchandise inventory
Total needs
(Click to select)Less beginning merchandise inventoryLess desired ending merchandising inventoryAdd desired ending merchandising inventoryAdd beginning merchandise inventory
Required purchases	$

c.	Prepare Cash Budgets for November and December. (Leave no cells blank - be certain to enter "0" wherever required. Input all amount as positive values.)

Welnor Industrial Gas Corporation Cash budget
	November	December
Cash disbursement for merchandise	$	$
Other monthly cash expenses
Total cash disbursements	$	$
Cash balance, beginning	$	$
Add cash receipts
Total cash available
Less cash disbursements
Excess (deficiency) of cash available over disbursements
Financing
Cash balance, ending	$	$

d.	Prepare Budgeted Income Statements for November and December. (Input all amount as positive values.)

Welnor Industrial Gas Corporation Budgeted Income Statements
	November	December
(Click to select)SalesDepreciationDirect materialsCost of goods soldOther monthly expenses	$	$
(Click to select)Direct materialsDepreciationAccounts payableOther monthly expensesBad debt expense
(Click to select)Cost of goods soldDirect materialsAccounts payableOther monthly expensesDepreciation
(Click to select)Gross lossGross margin
(Click to select)Cost of goods soldAccounts receivableSalesOther monthly expensesBad debt expense
(Click to select)Accounts receivableCost of goods soldBad debt expenseDepreciationSales
(Click to select)Net operating incomeNet operating loss	$	$

e.	Prepare a Budgeted Balance Sheet for the end of December. (Be sure to list the assets and liabilities in order of their liquidity.)

Welnor Industrial Gas Corporation Budgeted Balance Sheet December 31
Assets
(Click to select)Common stockAccounts payableCashRetained earningsAccounts receivable	$
(Click to select)CashBulidings and equipmentAccounts payableRetained earningsAccounts receivable
(Click to select)Accounts payableAccounts receivableRetained earningsInventoryCash
(Click to select)Accounts receivableRetained earningsCashAccounts payableProperty, plant and equipment
Total assets	$
Liabilities and Stockholders' Equity
(Click to select)Accounts receivableAccounts payableInventoryCashProperty, plant and equipment	$
(Click to select)Property, plant and equipmentInventoryAccounts receivableCommon stockAccounts payable
(Click to select)Property, plant and equipmentRetained earningsAccounts payableAccounts receivableInventory
Total liabilities and stockholders' equity	$