Weller Industrial Gas Corporation supplies acetylene and oth

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

Ignore taxes.

Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January.

Collections are expected to be 85% in the month of sale and 15% in the month following the sale.

The cost of goods sold is 60% 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 $21,200.

Monthly depreciation is $21,000.

Ignore taxes.

Balance Sheet
October 31
Assets Cash	$22,000
Accounts receivable	83,000
Merchandise inventory	158,400
Property, plant and equipment
(net of $594,000 accumulated depreciation)	1,004,000
Total assets	$1,267,400
Liabilities and Stockholders\' Equity Accounts payable	$196,000
Common stock	620,000
Retained earnings	451,400
Total liabilities and stockholders\' equity	$1,267,400
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.

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

b. Prepare a Merchandise Purchases Budget for November and December.

Cost of Goods Sold (60% of sales.)

c. Prepare Cash Budgets for November and December.

	November	December
Sales	330000	300000

Expected Cash Collections
Accounts Receivables (Given in the Question)	83000
November (85% in the month of sale)	280500	255000
	(330000*85%)	(300000*85%)
December (15% in the month following the sale)	49500	45000
	(330000*15%)	(300000*15%)
Total Expected Cash Collections	413000	300000

$Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store\'s operations follow: Ignore taxes. Sales$

Weller Industrial Gas Corporation supplies acetylene and oth

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