Weltin Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the stores operations follow: Sales are budgeted at $396,000 for November, $376,000 for December, and $386,000 for January. Collections are expected to be 92% in the month of sale, 6% in the month following the sale, and 2% uncollectible. The cost of goods sold is 51% of sales. The company purchases 65% of its merchandise in the month prior to the month of sale and 35% 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 $20,800. Monthly depreciation is $16,000. Ignore taxes. Statement of Financial Position October 31 Assets Cash $ 25,400 Accounts receivable (net of allowance for uncollectible accounts) 71,000 Inventory 131,274 Property, plant and equipment (net of $504,900 accumulated depreciation) 1,093,000 ________________________________________ ________________________________________ Total assets $ 1,320,674 ________________________________________________________________________________ ________________________________________________________________________________ Liabilities and Stockholders Equity Accounts payable $ 232,100 Common stock 690,000 Retained earnings 398,574 ________________________________________ ________________________________________ Total liabilities and stockholders' equity $ 1,320,674 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Required: a. Prepare a Schedule of Expected Cash Collections for November and December. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) November December Sales $ $ ________________________________________ ________________________________________ Schedule of expected cash collections: Accounts receivable $ $ November sales December sales ________________________________________ ________________________________________ Total cash collections $ $ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ b. Prepare a Merchandise Purchases Budget for November and December.(Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) November December Cost of goods sold $ $ ________________________________________ ________________________________________ Merchandise purchases budget: November sales $ $ December sales January sales ________________________________________ ________________________________________ Total purchases $ $ ________________________________________________________________________________ ________________________________________________________________________________ Disbursements for merchandise $ $ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ c. Prepare Cash Budgets for November and December. (Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) November December Cash receipts $ $ ________________________________________ ________________________________________ Cash disbursements: Disbursements for merchandise Other monthly expenses ________________________________________ ________________________________________ Total cash disbursements ________________________________________ ________________________________________ Excess (deficiency) of cash available over disbursements $ $ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ d. Prepare Budgeted Income Statements for November and December. (Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) November December Sales $ $ Bad debt expense Cost of goods sold ________________________________________ ________________________________________ Gross margin Other monthly expenses Depreciation ________________________________________ ________________________________________ Net operating income $ $ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ e. Prepare a Budgeted Balance Sheet for the end of December. (Be sure to list the assets and liabilities in order of their liquidity. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Balance Sheet for the end of December Assets $ ________________________________________ Total assets $ ________________________________________________________________________________ Liabilities and stockholders' equity $ ________________________________________ Total liabilities and stockholders' equity $