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

• Sales are budgeted at $340,000 for November, $350,000 for December, and $330,000 for January.
• Collections are expected to be 65% in the month of sale, 33% in the month following the sale, and 2% uncollectible.
• The cost of goods sold is 75% of sales.
• The company desires an ending merchandise inventory equal to 45% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase.
• The November beginning balance in the accounts receivable account is $69,000.
• The November beginning balance in the accounts payable account is $256,000.

Required:

a. Prepare a Schedule of Expected Cash Collections for November and December.

CAPRICE CORPORATION Schedule of Expected Cash Collections November December Sales $ 340,000 $ 350,000 Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections