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.