Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operation:s follow: . Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. . Collections are expected to be 80% in the month of sale and 20% in the month following the sale · The cost of goods sold is 72% of sales * The company desires an ending merchandise inventory equal to 80% 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 $21,500 Monthly depreciation is $21,300 Ignore taxes Balance Sheet October 31 Assets Cash $ 22,300 83,300 201,600 1,007,000 Accounts receivable Merchandise inventory Property, plant and equipment (net of $597,000 accumulated depreciation) $1,314,200 Total assets Liabilities and Stockholders' Equity Accounts payable $ 196,300 650,000 467,900 Common stock Retained earnings $1,314,200 Total 1liabilities and stockholders equity 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. Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operation:s follow: . Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. . Collections are expected to be 80% in the month of sale and 20% in the month following the sale · The cost of goods sold is 72% of sales * The company desires an ending merchandise inventory equal to 80% 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 $21,500 Monthly depreciation is $21,300 Ignore taxes Balance Sheet October 31 Assets Cash $ 22,300 83,300 201,600 1,007,000 Accounts receivable Merchandise inventory Property, plant and equipment (net of $597,000 accumulated depreciation) $1,314,200 Total assets Liabilities and Stockholders' Equity Accounts payable $ 196,300 650,000 467,900 Common stock Retained earnings $1,314,200 Total 1liabilities and stockholders equity 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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