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A Corporation is a supplier to an industry. Data regarding the company's operations follow ....

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Accounting

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A Corporation is a supplier to an industry. Data regarding the company's operations follow . . Sales are budgeted at $360,000 for November, $380,000 for December, and $370,000 for January Collections are expected to be 75% in the month of sale and 25% in the month following the sale. The cost of goods sold is 73% of sales The company desires an ending merchandise inventory equal to 85% of the cost of goods sold in the following month Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21600 Monthly depreciation is $21.400. Ignore taxes. - . Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment (net of $598,000 accumulated depreciation) Total assets 5 22,400 83,400 223,380 1,308,000 $1,337,180 Liabilties and Stockholders Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 196,400 660,000 480,780 $1,337,180 Required: a. Prepare a Schedule of Expected Cash Collections for November and December . Prepare a Merchandise Purchases Budget for November and December

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