Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are...

   

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Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $220,000 for November, $230,000 for December, and $210,000 for January. Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 35% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $57,000. The November beginning balance in the accounts payable account is $244,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December. November Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections 0 December 0 Required A Required B Prepare a Merchandise Purchases Budget for November and December. Merchandise Purchases Budget Cost of goods sold Total needs Required purchases November 69 0 0 December 0 0 Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $220,000 for November, $230,000 for December, and $210,000 for January. Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 70% of sales. • The company desires an ending merchandise inventory equal to 35% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $57,000. The November beginning balance in the accounts payable account is $244,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December. November Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections 0 December 0 Required A Required B Prepare a Merchandise Purchases Budget for November and December. Merchandise Purchases Budget Cost of goods sold Total needs Required purchases November 69 0 0 December 0 0

Answer rating: 100% (QA)

Schedule of Expected cash Particulars Accounts receivables Nov sales 220000 x 5... View the full answer