Ashton Company, a distributor of exercise equipment, is preparing o cosh budget for December. It provided the following information:

a$.$ The cash balance on December $1$ is $$51,800.$

b$.$ Actual sales for October and November and expected soles for December are as follows:

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 $2\%$ are uncollectible.

c$.$ Purchoses of inventory will total $$338,000$ for December. Thirty percent of a month's inventory purchoses are poid during the month

of purchose. The accounts payable remaining from November's inventory purchases total $$163,000,$ all of which will be paid in

December.

d$.$ Selling and administrative expenses ore budgeted ot $$434,000$ for December. Of this omount, $$80,400$ is for depreciotion.

e$.$ A new web server for the Marketing Department costing $$98,000$ will be purchssed for cosh during December, and dividends

totaling $$16,000$ will be paid during the month.

f$.$ The compony maintains a minimum cosh bolance of $$20,000.$ An open line of credit is available from the company's bonk to

increase its cosh balance os needed.

Required:

For December:

Colculate the expected cash collections.

$2$ Calculate the expected cash disbursements for merchandise purchoses.

Prepare a cash budget. Indicate in the financing section any borrowing needed during the month. Assume any interest will not be

paid until the following month.

Complete this question by entering your answers in the tabs below.

Required $1$

and $2$

Required $3$

Prepare a cash budget for December. Indicate in the financing section any borrowing needed during the month. Assume any

interest will not be paid until the following month