ABC company is a wholesaler of garments. Data regarding the store's operations follow:

Sales are budgeted at $525,000 for November, $480,000 for December, and $450,000 for January.

Collections are expected to be 80% in the month of sale, 16% in the month following the sale, and

4% uncollectible.

The cost of goods sold is 75% of sales.

The company purchases 70% of its merchandise in the month prior to the month of sale and 30%

in the month of sale. Payment for merchandise is made in the month following the purchase.

The November beginning balance in the accounts receivable account is $117,000.

The November beginning balance in the accounts payable account is $381,000.

Required:

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

b. make a Merchandise Purchases Budget for November and December.