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

Sales are budgeted at $$300,000$ for November, $$320,000$ for December, and $$310,000$ 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 $76\%$ of sales.

The company desires an ending merchandise inventory equal to $80\%$ 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 $$20,600.$

Monthly depreciation is $$20,400.$

Ignore taxes.

Balance Sheet

October $31$

Assets

Cash $ $21,400$

Accounts receivable $82,400$

Merchandise inventory $182,400$

Property, plant and equipment $($net of $$590,000$ accumulated depreciation$)1,000,000$

Total assets $ $1,286,200$

Liabilities and Shareholder's Equity

Accounts payable $ $195,400$

Common shares $550,000$

Retained earnings $540,800$

Total liabilities and shareholder's equity $ $1,286,200$

Required:

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

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

c$.$ Prepare Cash Budgets for November and December.

d$.$ Prepare Budgeted Income Statements for November and December.

e$.$ Prepare a Budgeted Balance Sheet for the end of December.

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