Kindly solve the following question

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 companys operations:

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

Actual sales for October and November and expected sales for December are shown below. 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.

	October			November			December
Cash sales	$	80,000		$	82,000		$	89,200
Sales on account		470,000			503,000			638,000

Purchases of inventory will total $338,000 for December. Thirty percent of a months inventory purchases are paid during the month of purchase. The accounts payable remaining from Novembers inventory purchases total $163,000, all of which will be paid in December.

Selling and administrative expenses are budgeted at $434,000 for December. Of this amount, $80,400 is for depreciation.

A new web server for the Marketing Department costing $98,000 will be purchased for cash during December, and dividends totalling $16,000 will be paid during the month.

The company maintains a minimum cash balance of $20,000. An open line of credit is available from the companys bank to bolster the cash position as needed.

Required: 1. Prepare a schedule of expected cash collections for December.

2. Prepare a schedule of expected cash disbursements during December for merchandise purchases.

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.