Exercise 4 Budgeting Oil Corporation supplies oil to country X. Data regarding the store's operations follow: - Sales are budgeted at $180,000 for March, $190,000 - April, and $175,000 - May. - Collections are expected to be 70% in the month of sale, 25% in the month following the sale, and 5% uncollectible. - The cost of goods sold is 60% of sales. - The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise is made in the month following the purchase. - Other monthly expenses to be paid in cash are $10,950. - Monthly depreciation is $10,000. - Ignore taxes. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December