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Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $240,000 for November, $250,000 for December, and $230,000 for January

Caprice Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow: • Sales are budgeted at $240,000 for November, $250,000 for December, and $230,000 for January. • Collections are expected to be 45% in the month of sale, 52% in the month following the sale, and 3% uncollectible. • The cost of goods sold is 75% of sales. • The company desires an ending merchandise inventory equal to 25% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. • The November beginning balance in the accounts receivable account is $59,000. • The November beginning balance in the accounts payable account is $246,000.

Required:
a.

Prepare a Schedule of Expected Cash Collections for November and December.

caprice corporation    
schedule of expected cash collections    
  november december
sales    
schedule of expected cash collections - -
accounts receivable    
november sales    
december sales    
total cash collections    

Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values.)

caprice corp    
merchandise purchsaes budget november december
budgeted cost of goods sold    
add or subtract begining or ending inventory?    
total needs    
add or subtract begining or ending inventory?    
required purchase  

Jun 02 2021 View more View Less

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