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

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Accounting

Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow. Sales are budgeted at $470,000 for November, $480,000 for December, and $460,000 for January. Collections are expected to be 60% in the month of sale and 40% in the month following the sale. The cost of goods sold is 70% of sales. The company desires an ending merchandise inventory equal to 40% 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 $82,000. The November beginning balance in the accounts payable account is $269,000.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.

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