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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 to be paid in cash are $21000, Monthly depreciation is $15,000 Ignore taxes . . $ 22,000 Statement of Financial Position October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant, and equipment 82,000 166,400 1,179,000 $ 22,000 82,000 166,400 Statement of Financial Position October 31 Assets Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant, and equipment (net of $658,000 accumulated depreciation) Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 1,170,000 $1,440,400 $ 199,000 840,000 401,400 $1,440,400 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

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