BBTalk Company Limited sells tiles and other decoration products. Data of the store's operations are as follow:

• Sales are budgeted at $340,000 for November 2019, $320,000 for December 2019, and $330,000 for January 2020.
• Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollectible will be recorded as bad debt expense.
• The cost of goods sold is 60% of sales.
• The company purchases 78% of its merchandise in the month prior to the month
• of sale and 22% in the month of sale. Payment for inventory is made in the month

following the purchase.

• Depreciation is $20,200 per month.
• Other monthly expenses to be paid in cash are $18,000.
• Other information as at 31 Oct 2019:
• Cash
• Accounts receivable (net of allowance for uncollectible accounts) Accounts payable
• Ignore taxes.
• Required:

1. Prepare Schedule of Expected Cash Collection for November and December.
2. Prepare Merchandise Purchases Budget for November and December.
3. Prepare Cash Budget showing the captions with figures of beginning, excess/(deficiency), ending balance and so on for November and December.
4. Prepare Income Statement Budget for November and December.