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

• Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January.
• Collections are expected to be 75% in the month of sale and 25% in the month following the sale.
• The cost of goods sold is 70% of sales.
• The company desires an ending merchandise inventory equal to 85% 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 $20,000.
• Monthly depreciation is $19,800.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	20,800
Accounts receivable		81,800
Merchandise inventory		214,200
Property, plant and equipment (net of $584,000 accumulated depreciation)		994,000
Total assets	$	1,310,800
Liabilities and Stockholders' Equity
Accounts payable	$	194,800
Common stock		490,000
Retained earnings		626,000
Total liabilities and stockholders' equity	$	1,310,800

Required:

a. 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

b. Prepare a Merchandise Purchases Budget for November and December.

	November	December
Budgeted cost of goods sold
Total needs
Required purchases

c. Prepare Cash Budgets for November and December.

	November	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

d. Prepare Budgeted Income Statements for November and December.

	November	December
Sales
Cost of goods sold
Other monthly expenses
Depreciation

e. 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