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Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $390,000 for November, $400,000 for December, and

Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $390,000 for November, $400,000 for December, and $380,000 for January. Collections are expected to be 55% in the month of sale, 43% in the month following the sale, and 2% uncollectible. The cost of goods sold is 80% of sales. The company desires an ending merchandise inventory equal to 35% 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 $74,000. The November beginning balance in the accounts payable account is $261,000. a. Prepare a Schedule of Expected Cash Collections for November and December. Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values.)

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