- A - E B 5 E G G H I J BC D E F On the tab labeled Solution, use all available data and a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. c. Prepare Cash Budgets for November and December. 38 CobWU Hle Edt Insert Format Help Qa Calibri - 2. BIUSA. . - ES B C D E 1 FGH UNA Budgeted Sales November December January $330,000 $300,000 $320,000 CON Collections are expected to be 85% in the month of sale and 15% in the month following the sale. The cost of goods sold is 60% of sales. The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,200. Monthly depreciation is $21,000. Ignore taxes. DIRECTIONS Given October Balance Sheet Solution C DE 4 $ Balance Sheet 31-Oct Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment (net of $594,000 accumulated depreciation) Total assets 22,000 83,000 158,400 1,004,000 $ 1,267,400 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 196,000 620,000 451,400 $ 1,267,400