Weldon 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 $350,000 for January.
• Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.
• The cost of goods sold is 65% of sales.
• The company desires an ending merchandise inventory equal to 60% 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 $21,900.
• Monthly depreciation is $20,000.
• Ignore taxes.

Balance Sheet
October 31
Assets:
Cash $16,000
Accounts receivable (net of allowances for uncollectible accounts $74,000
Merchandise inventory $140,400
Property, plant and equipment (net of $500,000 accumulated depreciation) $1,066,000
Total Assets: $1,296,400

Liabilities and Stockholders’ Equity:
Accounts payable $240,000
Common stock $640,000
Retained earnings $416,000
Total liabilities and stockholders’ equity: $1,296,400

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.