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

• Sales are budgeted at $290,000 for November, $300,000 for December, and $280,000 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 75% 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 $64,000.
• The November beginning balance in the accounts payable account is $251,000.

Required:

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

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

\begin{tabular}{|l|l|l|} \hline & November & December \\ \hline Sales & & \\ \hline Schedule of Expected Cash Collections & & \\ \hline Accounts receivable & & \\ \hline November sales & & \\ \hline December sales & & \\ \hline Total cash collections & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Merchandise Purchases Budget & November & December \\ \hline Cost of goods sold & & \\ \hline & & \\ \hline Total needs & & \\ \hline & & \\ \hline Required purchases & & \\ \hline \end{tabular}