The company budgeted its April sales as Dh450,000, May sales as Dh420,000, and June sales as Dh400,000.

From the sales to be made, the company expected to collect 80% of its credit sales in the month of sale and 16% in the month following the sale. Due to the poor economic environment, the company expected that 4% of the sale would eventually become uncollectible.

The company expected its cost of goods sold to be 70% of its sales.

The company planned to have an ending inventory of finished goods at 60% of the cost of goods sold in the following month. Moreover, the company will pay for the goods in the month following the purchase.

The April beginning balance in the accounts receivable account is Dh67,000.

The April beginning balance in the accounts payable account is Dh254,000.

a. Prepare a Schedule of Expected Cash Collections for April and May.

b. Prepare a Merchandise Purchases Budget for April and May.