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Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow. Sales are budgeted at $420,000 for November, $430,000 for December, and

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Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow. Sales are budgeted at $420,000 for November, $430,000 for December, and $410,000 for January Collections are expected to be 60% in the month of sale and 40% in the month following the sale The cost of goods sold is 70% of sales. The company desires an ending merchandise Inventory equal to 40% 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 $77,000 The November beginning balance in the accounts payable account is $264,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December Complete this question by entering your answers in the tabs below Required Requred Prepare a schedule of Expected Cash Collections for November and December November 13 420,000 December 430,000 Schedule of Expected Cash Collections November sales December Sales Total Cash collections Required > Capes Corporation is a wholesaler of Industrial goods. Data regarding the store's operations follow Sales are budgeted at $420,000 for November, $430,000 for December, and $410,000 for January Collections are expected to be 60% In the month of sale and 40% in the month following the sale The cost of goods sold is 70% of sales. The company desires an ending merchandise inventory equal to 40% 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 $77,000. The November beginning balance in the accounts payable account is $264,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Merchandise Purchases Budget for November and December Merchandise Purchases Budget November December Cost of goods sold $ 294,000 $ 301,000 Add Desired ending merchandise inventory 120.400 114,800 Total needs 414,400 415 800 Less Beginning merchandise inventory 117.000 120 400 Required purchases 5 296 800 $ 295.400

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