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Problems Prepare the problems below using Exc…

Problems Prepare the problems below using Excel. Upload the workbook using the link. 1. (12 points) Kawhi Corporation is a wholesaler of industrial goods. Data regarding the store’s operations follow: • Sales are budgeted at $298,000 for November, $326,000 for December and $270,000 for January.  • Cash sales are expected to be 35% of sales, and credit sales are expected to be 65% of sales. Collections of credit sales are expected to be 51% in the month of sale, 47% in the month following the sale, and 2% uncollectible. • The cost of goods sold is 70% of sales. • The company purchases 45% of its merchandise in the month prior to the month of sale and 55% in the month of sale without regard to beginning or ending merchandise inventory. Payment for merchandise is made in the month following the purchase. • The November beginning balance in the accounts receivable account is $76,400. Required:  a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. 2. (12 points) A sales budget is given below for one of the products manufactured by the Locke Co.: Sales Budget  in Units January 26,000 February 40,000 March 84,000 April 56,000 May 34,000 June 30,000 The inventory of finished goods at the end of each month must equal 35% of the next month’s sales. On December 31, the finished goods inventory totaled 5,200 units.   Each unit of product requires seven specialized electrical switches. The company has a policy of maintaining an ending inventory at the end of each month equal to 15% of the next month’s production needs. This requirement had been met on January 1 of the current year. Each switch costs $4.00. Required:  Prepare a budget showing the cost of switches to be purchased each month for January, February, and March and in total for the quarter. (Note: both a production budget and direct materials budget will need to be prepared.)