Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data

Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:

o Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January.

o Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.

o The cost of goods sold is 65% of sales.

o The company desires ending merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

o Other monthly expenses to be paid in cash are $21,000.

o Monthly depreciation is $16,000.

o Ignore taxes. 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.