Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:• Sales are budgeted at $370,000 for November, $380,000 for December, and $360,000 for January.• Collections are expected to be 45% in the month of sale and 55% in the month following the sale.• The cost of goods sold is 70% of sales.• The company desires an ending merchandise inventory equal to 25% of the cost of goods sold in the following month. Paymentfor merchandise is made in the month following the purchase.• The November beginning balance in the accounts receivable account is $72,000.• The November beginning balance in the accounts payable account is $259,000.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 ARequired BPrepare a Schedule of Expected Cash Collections for November and December.NovemberDecemberSalesSchedule of Expected Cash CollectionsAccounts receivableNovember salesDecember salesTotal cash collections< Required ARequired B >

a) November December Sales 370,000 380,000 Schedule of…

Answered: Required: 1. Prepare a Schedule of…

Required: 1. Prepare a Schedule of Expected Cash Collections for November and December. . Prepare a Merchandise Purchases Budget for November and December.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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