At March $31$ Streuling Enterprises, a merchandising firm, had an inventory of $38,000$ units,

and it had accounts receivable totaling $$85,000.$ Sales, in units, have been budgeted as

follows for the next four months:

April $60,000$

May $75,000$

June $90,000$

July $81,000$

Streuling's board of directors has established a policy to commence in April that the

inventory at the end of each month should contain $40\%$ of the units required for the following

month's budgeted sales. The selling price is $$2$ per unit. One$-$third of sales are paid for by

customers in the month of the sale, the balance is collected in the following month.

Required:

a$.$ Prepare a merchandise purchases budget showing how many units should be purchased

for each of the months April, May, and June.

b$.$ Prepare a schedule of expected cash collections for each of the months April, May, and

June.

$3)$ Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations

follow:

$$ Sales are budgeted at $$430,000$ for November, $$440,000$ for December, and $$420,000$ for

January.

$$ Collections are expected to be $40\%$ in the month of sale and $60\%$ in the month following

the sale.

$$ The cost of goods sold is $75\%$ of sales.

$$ The company desires an ending merchandise inventory equal to $20\%$ of the cost of goods

sold in the following month. Payment for merchandise is made in the month following

the purchase.

$$ The November beginning balance in the accounts receivable account is $$78,000.$

$$ The November beginning balance in the accounts payable account is $$265,000.$

$1.$ Prepare a Schedule of Expected Cash Collections for November and December.

$2.$ Prepare a Merchandise Purchases Budget for November and December.