Chapter 8 Help Save& Exit Submit Check my work 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 2.9 points a The cash balance on December 1 is $40,000. b. Actual sales for October and November and expected sales for December are as follows Cash sales Sales on account 5 45,00070,000 83,0D0 s 400,00D 525,000 600,000 Sales on account are collected over three-month period as follows: 20% collected in the month of sale, 60% colected in the month following sale, and 18% colected in the second month following sale. The remaining 2% is uncollectible. uterences cPurchases of inventory will total $280,000 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 $161,000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation. e. A new web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends totaling $9,000 will be paid during the month t. 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 disbdrsements 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 hat any interest will not be paid until the following month Complete this question by entering your answers in the tabs below Chapter 8 Help Save &ExitSub Check my work plete tnis question oy entering your answers in tne taos 0eiow. Req 1 and 2Required 3 2.9 points 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 Ashton Cash Budget Beginning cash balance Add collections from customers Total cash avalable Less cash disbursements Print Payments to supplers for inverlory Selling and administrative expenses Now web server Dividends paid Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Bomowings Repayments Total financing Ending cash balance R" , and 2