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 $20,000. An open line of credit is available from the company's bank to bolster the cash position as needed. Check my work References Requirement 1: Prepare a schedule of expected cash collections for December. (Omit the "$" sign in your response.) December cash sales Collections on account October sales November sales December sales Total cash collections