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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 $380,000 for November, $400,000 for December, and $390,000 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 72% of sales.
• The company desires an ending merchandise inventory equal to 85% 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 $21,000.
• Monthly depreciation is $20,800.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	21,800
Accounts receivable		82,800
Merchandise inventory		232,560
Property, plant and equipment (net of $608,000 accumulated depreciation)		1,018,000
Total assets	$	1,355,160
Liabilities and Stockholders' Equity
Accounts payable	$	195,800
Common stock		590,000
Retained earnings		569,360
Total liabilities and stockholders' equity	$	1,355,160

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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