Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $330.poo for November, $340,000 for December, and $320,000 for January Collections are expected to be 60% in the month of sale, 37% in the month following the sale, and 3% uncollectible. o The cost of goods sold is 80% of sales. The company desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. o The November beginning balance in the accounts receivable account is $68,000. o The November beginning balance in the accounts payable account is $255,000 points 8 02:17:50 Required: a. Prepare a Schedule of Expected Cash Collections for November and December. December $ 340,000 CAPRICE CORPORATION Schedule of Expected Cash Collections November Sales $ 330,000 Schedule of Expected Cash Collections Accounts receivable $ 68,000 November sales 198,000 December sales Total cash collections $ 125,800 204,000 November sales 198,000 $ 125,800 204,000 December sales Total cash collections points 8 02:17:43 b. Prepare a Merchandise Purchases Budget for November and December. CAPRICE CORPORATION Merchandise Purchases Budget November December Cost of goods sold Total needs Required purchases