Problem 3 (7 points) Capp Corporation is a wholesaler of industrial goods. Data regarding the 2021 first quarter's expected operations are as follows Sales are budgeted at $300,000 for January, $400,000 for February, $600,000 for March, and $500,000 for April. Collections are expected to be 50% in the month of sale, 49% in the month following the sale, and 1% uncollectible. The cost of goods sold is 60% of sales. The company desires an ending merchandise inventory equal to 10% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Balance Sheet, December 31, 2020 Required: Cash $10,000 a. How much cash is expected to be Accounts receivable, net of allowance 98,000 collected in January? (2 points) Merchandise inventory 18,000 Property, plant and equipment, net 200,000 Total Assets $326,000 Accounts payable $126,000 Notes payable 10,000 Common stock 100,000 Retained earnings 90,000 Total Liabilities and Stockholders' equity $326,000 b. What is the expected balance in the Accounts Receivable (net of allowance) that would be presented on March 314, 2021. (1 points) C. What are the expected dollars of purchases for January? (2 points)