Question 1 (43 marks) BBTalk Company Limited sells tiles and other decoration products. Data of the store's operations are as follow: Sales are budgeted at $340,000 for November 2019, $320,000 for December 2019, and $330,000 for January 2020. Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollectible will be recorded as bad debt expense. The cost of goods sold is 60% of sales. The company purchases 78% of its merchandise in the month prior to the month of sale and 22% in the month of sale. Payment for inventory is made in the month following the purchase. Depreciation is $20,200 per month. Other monthly expenses to be paid in cash are $18,000. Other information as at 31 Oct 2019: Cash $42,000 Accounts receivable (net of allowance for uncollectible accounts) $85,000 Accounts payable $218,000 Ignore taxes. Required: a. Prepare a Schedule of Expected Cash Collection for November and December. (8 marks) b. Prepare a Merchandise Purchases Budget for November and December. (10 marks) c. Prepare a Cash Budget showing the captions with figures of beginning, excess/(deficiency), ending balance and so on for November and December (10 marks) d. Prepare an Income Statement Budget for November and December (15 marks)