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

	Sales are budgeted at $260,000 for November, $270,000 for December, and $250,000 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 60% 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 $61,000.
	The November beginning balance in the accounts payable account is $248,000.

Required:

a.

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

	November	December
Sales
Schedule of Expected Cash Collection	----------------	-------------------
Accounts recievable		-----------------
November Sales
December SALES	---------------
tOTAal Cash collection

b.

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

	November	December
Budgeted cost of goods sold
deduct: Begining merchandise inventory
total needs
add: desired ending merchandise inventory
required purchase