Caprice Corporation is a wholesaler of industrial goods. Data regarding the stor
ID: 2755614 • Letter: C
Question
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.
Prepare a Schedule of Expected Cash Collections for November and December.
Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values.)
Required:
Explanation / Answer
Caprice Corporation is a wholesaler of industrial goods. Data regarding the stor