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 $ $ : ________________________________________ ________________________________________ Total needs : ________________________________________ ________________________________________ Required purchase $ $ ________________________________________________________________________________ ________________________________________________________________________________