30k int :nces a. The cash balance on December 1 is $41,000. b. Actual sales for October and November and expected sales for December are as follows: October Hover-Iber December Cash sales 5 63,400 $ 87,408 5 95,800 Sales on account 5 415,000 $ 614,008 5 692,000 Sales on account are collected over a threemonth period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. c. Purchases of inventory will total $376,000 for December. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $1?4,500, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $452,000 for December. Of this amount, $63,600 is for depreciation. e. A new web server for the Marketing Department costing $86,500 will be purchased for cash during December, and dividends totaling $10,500 will be paid during the month. 1'. 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 +h-n- nu in+nrnr~1 urill nn+ kn n-uirl Ilr|+i|+|1n 'Fnllnlllinn .11th