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

Sales are budgeted at $ for November, $ for December, and $ for January.

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

The cost of goods sold is of sales.

The company desires an ending merchandise inventory equal to 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 $

The November beginning balance in the accounts payable account is $

Required:

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

b Prepare a Merchandise Purchases Budget for November and December.