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2 (12 points) Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: The company sells each unit for $45. cte Sales: October Sales in Units 30,000 25,000 40,000 30,000 Collections are expected to be 709s in the month of sale, 30% in the month following the sale Month October November December January * The A/R balance at September 30th will be collected in full in October The cost of the merchandise is $32 per unit. .In addition to meeting the current month's sales demand, management wants to maintain and ending inventory balance of 10% of the next month's sales. The ending inventory balance at September 30th is 3,000 units. Payment for merchandise is made as follows: paid in the month of the purchase, % paid the month following the purchase. The A/P balance at September 30th will be paid in full in October. Other monthly expenses to be paid in cash are $300,000. Balance Sheet September 30 Assets Cash Accounts receivable.... Inventory. 16,000 250,000 90,000 Property, plant and equipment (net of $500,000 accumulated depreciatin). Iotal assetS.. 974.400 1.330,400 Liabilities and Stockholders' Equity Accounts payable S42,000 840,000 Common stock. Retained earnings.. Total liabilities and stockholders' equity... Required: a. Prepare a Sales Budget for October, November, December, and Quarter. b. Prepare a Schedule of Expected Cash Collections for October, November, c. Prepare a Merchandise Purchases Budget for October, November, December, December, and Quarter. and Quarter Prepare a Schedule of Expected Cash Disbursements for October, November, December, and Quarter. d. e. Prepare Cash Budgets for October, November, December, and Quarter

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