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Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
Sales are budgeted at $460,000 for November, $470,000 for December, and $450,000 for January.
Collections are expected to be 55% in the month of sale, 42% in the month following the sale, and 3% uncollectible.
The company desires an ending merchandise inventory equal to 35% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Required:
Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)
Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)
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