1) Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store’s operations follow:

1) Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store’s operations follow:

• Sales are budgeted at $360,000 for November, $380,000 for December, and $350,000 for January.

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

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

• The company desires an ending merchandise inventory equal to 60% 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 $21,900.

• Monthly depreciation is $20,000.

• Ignore taxes.

Required:

a. Display a Schedule of Expected Cash Collections for November and December.

b. Display 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. Display a Budgeted Balance Sheet for the end of December.