Final Exam Practice Saved 13 Part 1 of 3 [The following information applies to the questions displayed below.) 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 $40,000. b. 10 points Actual sales for October and November and expected sales for December are as follows: Help Save & Exit Submit eBook Print References Cash sales Sales on account October $65,000 $400,000 November December $70,000 $83,000 $525,000 $600,000 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 $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. f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position as needed. Check my work Requirement 2: Prepare a schedule of expected cash disbursements for merchandise purchases for December. (Omit the "$" sign in your response.) November purchases December purchases i Total cash payments eBook Print References Requirement 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. (The dollar amount of "deficiencies of cash available over disbursements" should be preceded by a minus sign. Enter all amounts as positive values. Leave no cells blank - be certain to enter "O" wherever required. Omit the "$" sign in your response.) (Click to select) Add cash receipts: (Click to select) (Click to select) Less disbursements: Ashton Company Cash Budget For the Month of December (Click to select) (Click to select) (Click to select) (Click to select) Total disbursements (Click to select) Financing: (Click to select) (Click to select) (Click to select) Total financing (Click to select) SA