Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:

Sales are budgeted at $$330,000$ for November, $$340,000$ for December, and $$320,000$ 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 $80\%$ 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 $$68,000.$

The November beginning balance in the accounts payable account is $$255,000.$

Required:

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

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