Reference no: EM13580089

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

•	Sales are budgeted at $330,000 for November, $350,000 for December, and $340,000 for January.
•	Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.
•	The cost of goods sold is 79% of sales.
•	The company desires ending merchandise inventory to equal 70% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
•	Other monthly expenses to be paid in cash are $20,100.
•	Monthly depreciation is $15,100.
•	Ignore taxes.

Statement of Financial Position October 31
Assets
Cash	$	21,100
Accounts receivable (net of allowance for uncollectible accounts)		81,100
Merchandise Inventory		182,490
Property, plant and equipment (net of $651,000 accumulated depreciation)		1,170,000
Total assets	$	1,454,690
Liabilities and Stockholders' Equity
Accounts payable	$	198,100
Common stock		740,000
Retained earnings		516,590
Total liabilities and stockholders' equity	$	1,454,690

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