am i correct? Capes Corporation is a wholesaler of industrial goods. Data regarding the...
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Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $390,000 for November, $400,000 for December, and $380,000 for January. Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 80% of sales. The company desires an ending merchandise inventory equal to 35% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $74,000. The November beginning balance in the accounts payable account is $261,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December. November $ 390,000 December $ 400,000 $ Sales Schedule of Expected Cash Collections Accounts receivable November sales December sales Total cash collections 74,000 2,145,000 $ 175,500 220,000 395,500 $ 2,219,000 $
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