Questions #7 and 8 Refer to the following data. Buttons Star Company is a small wholesaler. Data regarding the store's operations follows: Sales are budgeted at $330,000 for November, $340,000 for December, and $360,000 for January Collections are expected to be 80% in the month of sale, 15% in the month following sale, and 5% in the second month following sale * The Purchase Cost is 60% of sales. The company would like to maintain ending inventory equal to 70% of the next month's Purchase Cost of sales. Payment for merchandise is made in the month following purchase. 7. Expected cash collections in JANUARY are: a. $356,500 c. $339,000 b. $355,500 d. $288,000 e. None of the above. The answer is Answer 8. December cash disbursements (cash payments) for merchandise purchases would be: a. $202,200 c. $209,200 b. $206,200 d. $212,200 e. None of the above. The answer is