1 Problem 8-21 Schedules of Expected Cash Collections and Disbursements (LO8-2, L08-4, LO8-8|| You have been asked to prepare e December cash budget for Athton Company, distributor oferche equipment. The following Information is available about the company's operations The cash balance on December 1546,000 b. Actual tale for October and November and expected sales for December are as follows: w Calle not 78,200 11.600 35,000 140.000 54.000 66.000 Sales on account are collected over a three-month period as follows 20% collected in the month of sale, 60% colected in the month followings, and 18 colected in the second month following sale. The remaining 2. In uncollectible chchases of inventory will total $352,000 for December Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's very purchases total $200.000, of which will be paid in December Selingand intrative expenses are budgeted $505.000 for December of this amount 560,700 is for depreciation A new web server for the Marketing Department costing $102.000 will be purchased for cash during December, and dividends tosaling $16.500 will be paid during the month The company maintains minimum canh balance of 520.000. An open the of credit is available from the company's bank to increase its cash balance as needed Required 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December 3. Prepare a cash budget for December indicare in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid unto the following month 1 C. A new web server for the Marketing Department costing $102,000 will be purchased for cash during December, and dividends totaling $16.500 will be paid during the month The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to increase its cash balance as needed Required: 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December. 3. Prepare a cash budget for December Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 erences 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December Total cash collections Cash disbursements for merchandise purchases Req3 > . 1 Complete this question by entering your answers in the tabs below. 5 point Reg 1 and 2 Reg 3 Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month eBook Pan References Ashton Company Cash Budget For the Month of December Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Payments to suppliers for inventory Selling and administrative expenses Now web server Dividends paid Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance