Elon Co$.$s September balance sheet contains the following information:

Cash $ $48,300($dr$)$

Accounts receivable. $163,800($dr$)$

Allowance for doubtful accounts $3,400($cr$)$

Merchandise inventory $28,350($dr$)$

Management has designated $$48,300$ as the firm$$s minimum monthly cash balance. Other information about the firm and its operations is as follows:

Sales revenues of $$458,000,$ $$546,000,$ and $$405,500$ are expected for October, November, and December, respectively. All goods are sold on account.

The collection pattern for accounts receivable is $60\%$ in the month of sale, $39\%$ in the month following the month of sale, and $1\%$ uncollectible, which is set up as an allowance.

Cost of goods sold is $60\%$ of sales revenues.

Management$$s target ending balance of merchandise inventory is $10\%$ of the current month$$s budgeted cost of goods sold.

All accounts payable for inventory are paid in the month of purchase.

Other monthly expenses are $$61,350,$ which includes $$4,400$ of depreciation and $2,600$ of bad debt expense.

In the event of a shortfall, the company borrows money. In contrast, in the event of excess cash, the company invests in short$-$term investments. Borrowings and investments are assumed to be made at the end of a month in increments of $$7,850.$

Interest on borrowings is $10\%$ per year, payable every quarter, on the accumulated amount of the loan; similarly, interest earned on investments is $8\%$ per year on the accumulated investments and is received every quarter. Investments can be matured and the principal amount redeemed in June or December of a year.

Required:

$1.$ Prepare a merchandise purchases budget for October and November.

$2.$ Prepare the cash budgets for October and November, including the effects of financing $($borrowing or investing$).$ Interest is earned or paid quarterly. $($Any "Repayments" and "Interest" should be indicated by a minus sign. Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$