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9. Barra Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sakes are budgcted at $350,000 for November, $360,000 for December,
9. Barra Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sakes are budgcted at $350,000 for November, $360,000 for December, and $340,000 for Jamuary *Collections are expected to be 60% in the month ofsale, 39% in the month following the sale, and 1% * The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 40% ofthe flowing month's cost of pots sold. Payment for merchandise is made in the month following the purchase. The November beginning halance in the accounts receivable account is $70,000 The November beginning balance in the accounts payable account is $257,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December
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