The company has an Accounts receivable balance of $76,000 on January 1.

1. The January 1 Accounts payable balance is $260,500.

	January	February	March
Budgeted sales	410,000	395,000	400,000
Sales collected in the month sales are made	60%
Sales collected in the month after sales are made	40%
Desired ending finished goods inventory as a percentage of COGS of the following month	40%
Cost of goods sold as a percentage of monthly sales	75%

Prepare a Schedule of Expected Cash Collections for January and February and a Merchandise Purchases Budget for January and February.

You should insert a table to organize your information. Show your calculations.