Data regarding Veelance Corporation store's operations follow: Sales are budgeted at $340,000 for November, $360,000 for December, and $350,000 for January. Collections are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is 71% of sales. The company desires an ending merchandise inventory equal to 75% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,400. Monthly depreciation is $21,200. Ignore taxes. $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment (net of $596,000 accumulated depreciation) Total assets 22,200 83,200 181,050 1,006,000 $ 1,292,450 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 196,200 640,000 456,250 $ 1,292,450 Required: a. Prepare a Schedule of Expected Cash Collections for November. b. Prepare a Merchandise Purchases Budget for November