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CoursHeroTranscribedText: Washington Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: . Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 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 purchases 80% of its merchandise in the month prior to the month of sale and 20% in the month of sale. Payment for merchandise is made in the month following the purchase. . Other monthly expenses paid in cash are $21,000. Monthly depreciation is $16,000. Statement of Financial Position October 31 Assets Cash $22,000 Accounts receivable (net of allowance for uncollectible 82,000 accounts) Inventory 166,400 Property, plant, and equipment (net of $658,000 accumulated 1,170,000 depreciation) Total assets $1,440.400 Liabilities and Stockholders' Equity Accounts payable $199,000 Common stock 840.000 Retained earnings 401,400 Total liabilities and stockholders' $1,440,400 equity Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. (This is in dollars not units. Units sold will be cost of goods sold ($), beginning and ending inventory will be in dollars ($) not units) c. Prepare Cash Budgets (collections, disbursements, and ending balance for November and December. d. Prepare Budgeted Income Statements for November 1 to December 31. e. Prepare a Budgeted Balance Sheet for the end of December

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