Weller Industrial Gas Corporation Supplies Acetylene and Other Compressed Gases

Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:
o Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January.
o Collections are expected to be 85% in the month of sale and 15% in the month following the sale.
o The cost of goods sold is 60% of sales.
o The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month.
o Payment for merchandise is made in the month following the purchase.
o Other monthly expenses to be paid in cash are $21,200.
o Monthly depreciation is $21,000.
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.