Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $430,000 for November, $440,000 for December, and $420,000 for January. Collections are expected to be 40% in the month

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Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $430,000 for November, $440,000 for December, and $420,000 for January. • Collections are expected to be 40% in the month of sale and 60% in the month following the sale. • The cost of goods sold is 75% of sales. • The company desires an ending merchandise inventory equal to 20% 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 $78,000. • The November beginning balance in the accounts payable account is $265,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December. November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections Required A Required B > Required A Required B Prepare a Merchandise Purchases Budget for November and December. Merchandise Purchases Budget November December Cost of goods sold Total needs Required purchases $ $ < Required A Required B >

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a Schedule of expected cash collection November December Sales 430000 440000 Schedule of expected View the full answer