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Kashmir Industrial Gas Corporation supplies acetylene and other compressed gases to industries. Data regarding the store's operations follows:

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.

Other monthly expenses to be paid in cash are $21,800.

Monthly depreciation is $18,000.

Ignore taxes.

Statement of Financial Position
October 31
Assets
Cash		$25,000
Accounts receivable (net of allowance for
uncollectible accounts)..	71,000
Inventory		163,800
Property, plant, and equipment (net of
$504,000 accumulated depreciation)...	1,088,000
Total Assets		$1,347,800
Liabilities and Stockholders Equity
Accounts payable..........		$232,000
Common stock..		700,000
Retained earnings.........		415,800
Total Liabilities and stockholders equity.		$1,347,800

Required:

1. Prepare a Schedule of Expected Cash Collections for November and December.

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

3. Prepare Cash Budgets for November and December.

4. Prepare Budgeted Income Statements for November and December.

5. Prepare a Budgeted Balance Sheet for the end of December.

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