6 Safari File Edit View History Bookmarks Window Help - Sun Mar 19 6:00 PM oOEE 0 E Beztomheducationcom (3 @ it] + 33 G; How to make a DlY b... Etsy - Shopping Cart 5 Artisan Design Seri... \\) Order Confirmation |... 0 Question 13 - Quiz 6... G The marketing depa... u Dashboard View Message Quiz 6 - Chapter 8 0 Saved Help Saw\"; Exit Submit SPRING...CC132-,.. Problem 8-21 (Algo) Schedules of Expected Cash Collections and Disbursements [LO8-2, LOB-4, LO8-8] 13 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 December1 is $51,200. ' t pom S b. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 74,209) $ 79,600 $ 83,600 Sales on account $ 455,000 $ 550,000 $ 673,000 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 $346,000 for December. Thirty percent ofa month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $177,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $473,000 for December. Of this amount, $75,000 is for depreciation. e, A new web server for the Marketing Department costing $72,000 will be purchased for cash during December, and dividends ,2 totaling $17,500 will be paid during the month. E f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to Log increase its cash balance as needed. : Required: i 1. Calculate the expected cash collections for December. 2. Calculate the expected cash disbursements for merchandise purchases for December. DOCX 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. % (Prev 13of13 1 $sf-x591tuf'i? EeiIIIII-Vliem Marketing Plan Template.docx Next