Zoom level. Click to open the Zoom dialog box. Icetylene and other compressed gases to industry. Data regarumg te stores operations Tonow. Sales are budgeted at $390,000 for November, $370,000 for December, and $380,000 for January. Collections are expected to be 90% in the month of sale, 5% in the month following the sale, and 5% uncollectible. The cost of goods sold is 60% of sales. The company purchases 70% of its merchandise in the month prior to the month of sale and 30% in the month of sale. Payment for merchandise is made in the month following the purchase. (Hint:70% of the cost of sale) Other monthly expenses to be paid in cash are $24,000. Monthly depreciation is $20,000. Ignore taxes. $ 25,000 Statement of Financial Position October 31 Assets Cash. Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant and equipment (net of $504,000 accumulated depreciation)...... Total assets 71,000 163,800 1,088,000 $1,347,800 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings. Total liabilities and stockholders' equity... $ 232,000 700,000 415,800 $1,347,800 Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November. c. Prepare Cash Budgets for November. d. Prepare Budgeted Income Statements for November. e. Prepare a Budgeted Balance Sheet for the end of November