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

	Sales are budgeted at $350,000 for November, $360,000 for December, and $340,000 for January.
	Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.
	The cost of goods sold is 75% of sales.
	The company desires an ending merchandise inventory equal to 40% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
	The November beginning balance in the accounts receivable account is $70,000.
	The November beginning balance in the accounts payable account is $257,000.

Required:

a.	Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)

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

b.	Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)

Capp Corporation Merchandise Purchases Budget
	November	December
Budgeted cost of goods sold	$	$
(Click to select)DeductAdd: (Click to select)Beginning merchandise inventoryDesired ending merchandising inventory
Total needs
(Click to select)DeductAdd: (Click to select)Beginning merchandise inventoryDesired ending merchandising inventory
Required purchase	$	$