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Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
Sales are budgeted at $340,000 for November, $350,000 for December, and $330,000 for January.
Collections are expected to be 65% in the month of sale, 33% in the month following the sale, and 2% uncollectible.
The company desires an ending merchandise inventory equal to 45% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" 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.)
Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Rivers Associates' warehouse was $1,800. Rivers Associates insured the shipment at a cost of $300. Prior to putting the goods up for sale, they cleaned and re..
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