40 points eBook References D You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: 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: Cash sales Sales on account October $ 68,400 $ 415,000 November $ 87,400 $ 614,000 December $ 95,800 $ 692,000 Sales on account are collected over a three-month 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 $174,500, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $452,000 for December. Of this amount, $63,500 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. f. 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.

You have been asked to prepare a December cash budget for Ashiton Company, a distr butor of exercise equpment, The following information is avalable about the company's opetations a The cash batance on December 1 is $41,000 b. Actual sales for October and November and expected sales for December are as foliows. 5ales on account are collected over a three-month penod as follows: 20% collected in the month of sale, 60% collected in the month following sulte, and 18% collected in the second moenth followng sale. The remaining 2% is uncolectible c. Puichases of inventory will total $376,000 for Decermbet. Thity percent of a month's inventory purchases are paid during the month of purchase. The accounts piryable renaining from November's inventory purchases total $174.500, all of which will be paid in Decenber 14. Selling and adminstrative expenses are budgeted at $452000 for December. Of this amount, $631,500 is for depreciation e A new web server for the Marketing Department costing $86,500 will be purchased for cash during December, and dividends totaing $10,500 wit be paid diang the month t. The company maintains a minimum cash batance of $20,000. An open line of cred it is avallable from the cornpanys bank to merease its cash balance is needed Required: 1. Caliculate the erpected cath collections for December 2 Calculate the expected cath disturvements for merchandive purchases for December 3 Prepace a cash budoct for December Indicale in the financing section any borrowing that wal be needed dining the rionth. Assame that any interest wit not be paid unti the followng month