Asked by Alyssa Longmire on May 01, 2024

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Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:Sales are budgeted at $440,000 for November, $450,000 for December, and $430,000 for January.Collections are expected to be 45% in the month of sale and 55% in the month following the sale.The cost of goods sold is 80% of sales.The company desires an ending merchandise inventory equal to 25% 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 $79,000.The November beginning balance in the accounts payable account is $266,000.Required:a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December.