Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:

•
Sales are budgeted at $260,000 for November, $270,000 for December, and $250,000 for January.

•
Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.

• The cost of goods sold is 60% of sales.
•
The company desires an ending merchandise inventory equal to 40% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

• The November beginning balance in the accounts receivable account is $61,000.
• The November beginning balance in the accounts payable account is $248,000.


Required:
a.
Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)

November December
Sales
Schedule of Expected Cash Collection ---------------- -------------------
Accounts recievable -----------------
November Sales
December SALES ---------------
tOTAal Cash collection
b.
Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)

November December
Budgeted cost of goods sold
deduct: Begining merchandise inventory
total needs
add: desired ending merchandise inventory
required purchase