Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $330,000 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. 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. The November beginning balance in the accounts receivable account is $68,000. - The November beginning balance in the accounts payable account is $255,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. December CAPRICE CORPORATION Schedule of Expected Cash Collections November 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. December CAPRICE CORPORATION Merchandise Purchases Budget November Cost of goods sold Add: Desired ending merchandising inventory Total needs Deduct: Beginning merchandise inventory Required purchases