Question Five: Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: o Sales are budgeted at $350,000 for November, $360,000 for December, and $340,000 for January. o Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible. o The cost of goods sold is 75% of sales. o The company purchases 40% of its merchandise in the month prior to the month of sale and 60% in the month of sale. Payment for merchandise is made in the month following the purchase. o The November beginning balance in the accounts receivable account is $70.000. o The November beginning balance in the accounts payable account is $257,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December