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

Sales are budgeted at $460,000 for November, $470,000 for December, and $450,000 for January.

Collections are expected to be 55% in the month of sale and 45% in the month following the sale.

The cost of goods sold is 60% of sales.

The company desires an ending merchandise inventory equal to 35% 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 $81,000.

The November beginning balance in the accounts payable account is $268,000.

Required:

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

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

November December Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections 0 $