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Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $310,000 for November, $320,000 for December, and

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

Sales are budgeted at $310,000 for November, $320,000 for December, and $300,000 for January.

Collections are expected to be 45% in the month of sale, 53% in the month following the sale, and 2% uncollectible.

The cost of goods sold is 60% of sales.

The company desires an ending merchandise inventory equal to 25% 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 $66,000.
The November beginning balance in the accounts payable account is $253,000.

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)AddDeduct: (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 $ $

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